BCG Case
A firm based in Michigan (Detroit), manufactures electronics home entertainment products. The list of products, market shares, growth rates, and turnovers are listed down below. The firm has a creative set of product developers who are experts on assessing new consumer needs. Construct a BCG matrix for assessing the portfolio strategy for the firm*. Based on the matrix, what are your recommendations?
*Hint: To identify high or low market share/growth rates, identify the averages of the numbers below. Anything higher than average falls in the high bracket, and lower than average falls in the low bracket.
|
|
Plasma screen
|
TV
|
DVD
|
Radio
|
Music systems
|
|
Growth 2002
|
5%
|
10%
|
10%
|
4%
|
3%
|
|
Growth 2003
|
15%
|
10%
|
12%
|
4%
|
1%
|
|
Growth 2004
|
25%
|
11%
|
15%
|
4%
|
-2%
|
|
Relative Market Shares
|
60%
|
55%
|
20%
|
70%
|
12%
|
|
Turnover Annual
|
5 Mn
|
50 Mn
|
45 Mn
|
70 Mn
|
3 Mn
|