Bcg Matrix

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BCG Analysis
In term of Boston Consulting Group, there are four types of business. According to the research, it shows that Poh Huat Resources Holding is exists as a question mark in BCG matrix. Question marks represent business units having low relative market share and located in a high growth industry. Hence, Poh Huat Resources Holding should invest huge amount of cash to maintain or gain market share. If successes in gaining a huge market share, then Poh Huat Resources Holding has potential of becoming stars. Opinions on the company’s strategy & operations

Recommendations on strategy
Economics of scale
Innovation or Differentiation strategy
Word of mouth-promotion
-We are now taking steps to migrate the machinery and operations under Poh Huat Furniture Industries (Qingdao) Co Ltd to its sister company, Contempro Furniture (Qingdao) Co Ltd and will operate the business in Qingdao at a much more manageable scale.

-As for our manufacturing operations in China, we continued to suffer operating losses, albeit at a much smaller scale of RM1.36 million, due to lack of economy of scale

Online
We are going to take an aggressive strategic focus on bringing IKEA online. Not only will we reach potential customers in less populated areas but they will catch up to their competitors. The other reason for this strategy is that this is the way IKEA can start to reach a younger demographic. Younger people are more aware of online activities and are more willing to buy online. The older demographic is still a little scared about buying online

We are going to take an aggressive strategic focus on bringing IKEA online. Not only will we reach potential customers in less populated areas but they will catch up to their competitors. The other reason for this strategy is that this is the way IKEA can start to reach a younger demographic. Younger people are more aware of online activities and are more willing to buy online. The older demographic is still a little...
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