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BCG matrix - strategy formulation

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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.
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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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The BCG matrix is very helpful for companies in making portfolio decision strategy. In this case, electronics division is in the question mark segment. Questions marks are low market share business units in high growth markets. Investment is needed to hold their share, building them into stars. Therefore, we can say that the electronics division of the company has a very small market share in a fast growing market.

Therefore, the company should try to initiate strategic and marketing plans to concentrate on this rapidly rising industry and try to capture more market share by new strategies and analyzing the reasons for poor performance till now. This division has the capability of becoming a star performer in the company's portfolio of products, therefore the management, marketing and other key departments should focus on improving the performance of this segment and should find out and correct all the factors which has resulted in such small market share in a fast growing business segment.

The appliance ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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