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A New Approach to Portfolio Matrix Analysis for Strategic Marketing Planning

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A New Approach to Portfolio Matrix Analysis for Strategic Marketing Planning
A NEW APPROACH TO PORTFOLIO MATRIX ANALYSIS
FOR STRATEGIC MARKETING PLANNING
1

2

Vladimir Dobrić , Boris Delibašić
Faculty of organizational science, vdobric@fon.rs
2
Faculty of organizational science, delibasic.boris@fon.rs
1

Abstract: Portfolio matrix is probably the most important tool for strategic marketing planning, especially in the strategy selection stage. Position of the organization in the portfolio matrix and it’s corresponding marketing strategy depends on the aggregation of values of relevant strategic factors. Traditional approach to portfolio matrix analysis uses averaging function as an aggregation operator. This approach is very limited in realistic business environment characterized by complex relations between strategic factors. An innovative approach to portfolio matrix analysis, presented in this paper, can be used to express complex interaction between strategic factors. The new approach is based on the logical aggregation operator, a generalized aggregation operator from which other aggregation operators can be obtained as special cases. Example of traditional approach to portfolio matrix analysis given in this paper clearly shows it’s inherited limitations. The new approach applied to the same example eliminates weaknesses of traditional one and facilitates strategic marketing planning in realistic business environment.
Key words: Portfolio matrix analysis, strategic marketing planning, logical aggregation, aggregation operator. 1. INTRODUCTION
The portfolio matrix analysis is widely used in strategic management [2, 3, 6]. It offers a view of the position of the organization in its environment and suggests generic strategies for the future. Some of the most frequently used portfolio matrices are the ADL (developed by Arthur D. Little), the BCG (Boston Consulting
Group) and the GE (General Electric) McKinsey matrix. Other models that can be considered as versions or adaptations of the original GE McKinsey



Bibliography: [1] Beliakov G., Pradera A., Calvo T., Aggregation functions: A guide for practitioners , Springer-Verlag, Berlin Heilderberg, 2007. [2] Leibold M., Probst G. J. B., Gibbert M., Strategic Management in the Knowledge Economy”, Wiley VCH, 2005. [3] McDonald Malcolm, Marketing Plans (fourth edition), Butterworth-Heinemann, 1999. [4] Radojević D., “Logical aggregation based on interpolative Boolean algebra“, Mathware & Soft Computing, 15 (2008) 125 -141. [5] Radojević D., “(0,1) - valued logic: A natural generalization of Boolean logic“, Yugoslav Journal of operational Research, 10 (2000) 185 - 216. [6] Roney C. W., Strategic Management Methodology, Praeger Publishers, 2004.

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