The BCG matrix can be used to determine the appropriate mission of an organization with four common missions to choose from: Build (?), Hold (Star), Harvest (Cash Cow), Divest (Dog).
Yellow Trubrite Dye: 1) For Monarch, In the BCG matrix I think this product should be Build (?), it is because Monarch got about 50% of the market share, however because of the obsolescent technologies used, the vast industry overcapacity, the severe price competition, the limited profitability, the possibility of latent toxicology problems and the fact that Monarch did not have sufficient strength in any segment of the industry, so the business growth rate is low and have to increase market share by turning‘?’ into Stars. And it is a low cost categories, both Monarch and Trojan were trying to achieve cost leadership via large volumes. The yellow fabric dye business has become primarily a two competitor race with Trojan and Monarch both using price very aggressively and each possessing about 50% of the business.
Blue Trubrite Dye : 1) product differentiation categories in the first place light sensitivity segment, 2) Ajax low cost
Ajaxcash cow which had lost out to Monarch in the yellow dye business in 1981, did not drop out of the blue dye business, so it is a Harvest (Cash Cow), increase short term cashflow by using cash cow funds to fund other businesses. RED Trubrite Dye: product differentiation categories
2) Hold – Preserve market share (invest /advertise)
The BCG matrix can be used to determine
the appropriate mission of an organization, which is concern about the market share and business growth rate, with four common missions to choose from
• Build (?), Hold (Star), Harvest (Cash Cow), Divest
(Dog). However, Porter provides a useful framework
for analysing the market, and to determine the degree and
the nature of competition, such as five force models Porter is focus on how the business to gain a competitive advantage by using differentiation and cost...
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