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You have been given the BCG matrix on two divisions of your company - the appliance and electronics divisions. It appears that the electronics division can be located in the upper right quadrant of the matrix and the appliance division appears in the lower left quadrant of the matrix. You need to offer a strategic recommendation based on these findings. Include an opinion on how much reliance the company should have on these findings, what these findings suggest, what recommendations you would make, and what other measurements should be used to help reinforce or negate these findings. Support your answer.
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Solution Summary
You have been given the BCG matrix on two divisions of your company - the appliance and electronics divisions. It appears that the electronics division can be located in the upper right quadrant of the matrix and the appliance division appears in the lower left quadrant of the matrix. You need to offer a strategic recommendation based on these findings. Include an opinion on how much reliance the company should have on these findings, what these findings suggest, what recommendations you would make, and what other measurements should be used to help reinforce or negate these findings. Support your answer.
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The BCG matrix is very helpful for companies in making portfolio decision strategy. In this case, electronics division is in the question mark segment, meaning it commands a small market share in a very fast growing industry. Therefore, the company should try to initiate strategic and marketing plans to concentrate on this rapidly rising industry and ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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