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Star Question Mark Cash Cow Dog High Business Growth Rate

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Presentation on theme: "Star Question Mark Cash Cow Dog High Business Growth Rate"— Presentation transcript:

1 Star Question Mark Cash Cow Dog High Business Growth Rate
Relative Position (Market Share) High Low Cash Cow Dog Low Learn about BCG Matrix at

2 Why Technology? Technology has been significantly changing our life-style and living environment steadily since the 1970s. IBM’s recent global study of CEOs, “Enterprise of the Future”, found that, at its core, the enterprise of the future is … Hungry for change; Innovative, beyond customer imagination; Globally integrated; Disruptive by nature; and Genuine, not just generous. The complex nature of business and the flattening of business processes and strategies are forcing critical reliance on technology.

3 Average unit price of Ford Model T (in 1958$)
The experience of the Ford Motor Company from 1908 to 1923 illustrates how experience curve strategy can cause a firm to focus obsessively on costs and thus fail to innovate ending up with an increa- singly obsolete product. Average unit price of Ford Model T (in 1958$) Source: W.J. Abernathy & K. Wayne: “Limits of the Learning Curve”, Harvard Business Review, Sept-Oct 1974 Cumulative units produced

4 The VALS 2TM classification of eight American lifestyles*
Principle oriented Status oriented Action oriented FULFILLEDS BELIEVERS ACTUALIZERS ACHIEVERS STRIVERS STRUGGLERS EXPERIENCERS MAKERS Abundant resources Minimal resources *Martha Farneworth Riche: “Psychographics for the 1990s” American Demographics, July 1989, p

5 Porter’s generic competitive strategies
Cost Leadership Differen-tiation Focussed Cost Focus Narrow target Broad target Lower cost Differentiation Competitive Advantage Competitive Scope Porter’s generic competitive strategies Michael Porter: The Comparative Advantage of Nations (The Free Press, New York, 1990)


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