Create a BCG Model for the following problem.
GNP of 8% as the growth of the economy and you do not have to comment on what you would do with each SBU/LOB
You are the CEO of a firm with five distinct SBU/LOBs. It is your responsibility to decide how to manage them. Develop a model using the following intelligence, and then briefly comment on what you would do with each SBU/LOB.
The GNP is growing at 8%.
SBU/LOB A. This is your newest product line and it was just introduced. You anticipate significant competition from the bigger existing competitors but there is still plenty of room to grow in the industry, even faster than the GNP . Its contribution to the corporate portfolio is 5%.
SBU/LOB B. This product is in the decline stage of its life cycle and your competition have already exited because of lack of growth in the industry. Contribution is 5%.
SBU/LOB C. This is an established product with 25% market share. Your competitors have 50%, 20% and 5% respectively. There is almost no industry growth and contribution is 65%.
SBU/LOB D. You are the market leader in an industry. growing at 5%. Its contribution is 15%.
SBU/LOB E. You were the first to introduce this product so now you are the biggest guy on the block. Because of the potentially unlimited value of this great product this industry is growing at 20% and its contribution is 10%.
Draw a 4 quadrant box matrix and identify relative market share, industry growth, grotwht of the economy as a whole, high/low indicators and the names of the boxes.
Determine if the LOB/SBU industry growth is high or low cokmpared to the growth of the economy as a whole.
Determine the relative market share (RMS) of each LOB/SBU.