BCG matrix
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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.
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Electronics division is in the "question mark" segment of the matrix, which implies that this segment has a small market share in a rapidly growing industry. This segment absorbs a lot of cash in order to survive. Therefore, a company cannot afford to operate this segment for long because cash outflow or investment is quite high but returns are quite low. The company needs to create a strategic plan immediately to ...
Education
- BComm, University of Delhi
- Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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