One method of assessing the potential risks and rewards of a particular marketing strategy is to use Ansoff’s Matrix. This identifies 4 major strategies including market penetration, market development, market penetration and diversification. In the case of Burkinshaw, diversification is the new strategy being considered. The company’s marketing director argues the company should be developing new products for a new market, the large Chinese department store. The store has shown an interest in placing a large order, giving the company huge potential being entered into such a complex market. Moreover, it guarantees Burkinshaw future orders as well as growth. As the large Chinese department store expands, so will the sale of their products as it’s reaching more areas. From this it can be said although risky, the potential the Chinese department store offers is huge for Burkinshaw.…
Dess. (2012). Strategic Management text and cases, 6th Edition. McGraw-Hill Learning Solutions. Retrieved from <vbk:0077653017#outline(12.6.4.2)>.…
When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other competitors obtained the ability bring new products to market in a much shorter timeframe (Brickley, 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. With this changing market environment and technological advancement, Kodak lost its monopoly in the film production market and was forced to make a change.…
Khanna, A. (2013, February 10). Back to Basics: 5 Objectives for Successful Cloud Adoption. Business Computing World.…
BCG Growth- Share Matrix was developed in 1967 by the Boston Consulting Group and is illustrated by a matrix. The market’s rate of growth is indicated on the vertical axis and the firm’s share of the market is indicated on the horizontal axis. A firm’s business units can be plotted on the matrix with a circle whose size denotes the relative size of the business unit. The horizontal position of a business indicates its market share and its vertical position depicts the growth rate of the market in which it competes. Managers and consultants can categorize each business unit as a star, question mark, cash cow or a dog, depending on each one’s relative market share and the growth rate of its market.…
A customer database is helpful to companies like Kodak because it lets them see who their customers are, so they can market specifically to them, and it lets them know what their customers are purchasing. If these companies did not have customer databases then they would have to find another way to gather the same information, IE: surverys. The information that gets housed after a customer purchases something is crucial in marketing strategies and production strategies. A company like Kodak could figure out which product is selling a lot of which is not selling and ramp up production or cut don production. Kodak could also market to specific age groups or specific regions with the information they gather from purchases.…
Corporate Strategy Analysis Discussion SummaryMaliaka M. McClendonMGT/230October 27, 2014Leslie HallCorporate Strategy Analysis Discussion SummaryCorporate strategy identifies the set of businesses, markets, or industries in which the organization competes and then distribute the resources among the businesses. With four basic alternatives when using corporate strategy in the planning function of management are concentration, vertical, integration, concentric diversification, and conglomerate diversification. Once I reviewed the Destination CEO videos regarding Coco-Cola, Southwest, Airlines, VF Corporation, and Xerox, the team will discuss and individually summarize how each corporation use different strategies in operations.…
1. Diagnose the reasons for Kodak’s market share loss and make your assessment of the likely development of the market if Kodak maintained the status quo.…
It is the rare corporation that can recognizes the need to integrate its resources, policies, people, assets and procedures with changing business strategies. Rarer still is the organization that acts on this need. Yet, in today's competitive global market, an integrated strategy is increasingly necessary. Given the speed with which change occurs in the global business environment, standard planning techniques and asset allocation methods have become woefully outdated. Indeed, achieving new levels of business sophistication is a never-ending process, requiring Acorn to rapidly a strategic organizational transformation to meet changing conditions. To effectively accomplish this transformation the company needs a system that provides continuous evaluation and improvement, ensuring effective use of both business (hard) and organizational (soft) assets. In particular, what is required is a balance and alignment between customer, organizational and business investment. In today's market, organizations not taking such an approach run the serious risk of failing to meet the expectations of shareholders.…
Hambrick, D., I. MacMillan, and D. Day. "Strategic Attributes and Performance in the BCG Matrix." Academy of Management Journal (1982): 500–509.…
Michael Porter created two concepts used by industries to either achieve greater competitive advantage or can be used as an over all strategy in the market. Both of these concepts work in conjunction with each other to work towards the ultimate goal of generating revenue and stockholders wealth. In this paper these concepts will be discussed in-depth to explain what they are, how they are an advantage and disadvantage and how to apply them.…
A Strategic Business Unit (SBU) is when a unit comprises one or more products having a common market base whose manager has complete responsibility for integrating all function in to a strategy against an identifiable competitor. An SBU is composed of a product or product lines having identifiable independence from other products or product lines in term of competition, prices, substitutability of product, style/quality, and impact of product withdrawal. (Kendrick, 2009) Sometimes a division in a company may have two or more SBUs.…
{draw:frame} The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: Stars (=high growth, high market share) use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. Cash Cows (=low growth, high market share) profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high Foundation of a company Dogs (=low growth, low market share) avoid and minimize the number of dogs in a company. beware of expensive ‘turn around plans’. deliver cash, otherwise liquidate Question Marks (= high growth, low market share) have the worst cash characteristics of all, because high demands and low returns due to low market share if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash The BCG Matrix method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy, such as a…
used by companies today. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The development of the matrix requires the assessment of a business portfolio, which include an organization’s…
Porter, M. E., et al. (1996). "From competitive advantage to corporate strategy." Managing the multibusiness company: Strategic issues for diversified groups, New York: 285-314.…