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4410 (Company (BCG Matrix/ Portfolio Analysis (Cash Cow (harvest) (can…

- - - - low market share,
      - growth rate low: market is very competitive
    - - low market share
      - high market growth: potential is here
      - Not know if it's profitable or not, difficult to figure out what to do
    - - large position in the market, likely a dominant player
      - generate great amount of revenue for our company
      - high growth area, still potential and opportunity for it.
    - - can control large position in the market
      - Not a lot of potential, but a lot of competition
      - we are already the dominant player as well
      - brand awareness is good
    - - build market share: invest in this product
      - "hold strategy": maintain status quo--do nothing
      - "harvest strategy": reduce our financial support for ad, promo etc
      - divest: we eliminate these (Dogs)
  - - - simple
      - functional
      - divisional
    - - team
      - matrix
      - project
      - autonomous internal units
      - boundaryless
      - learning
  - - - Weakness
      - Opportunities
      - Threats
      - Strength
    - - KSF within the industry
      - Matter to customers? Durable? Hard to copy? Exploitable?
      - Sustainable competitive advantage meets all above
  - - - customer loyalty, location, distribution and information systems, unique merchandise, vendor relations, customer service, multiple source advantages.
  - - - Inbound logistics: about raw materials
      - operations: transforming inputs to finished products
      - Outbound logistics: warehousing, distributing products
      - Marketing and sales
      - Service
    - - identify sub activities for each primary activity
      - Identify sub act. for each support activity
      - Identify links
      - Look for opportunities to increase value
      - Reap the margin from those activities
    - - Low costs
      - Differentiation
    - - Firm infrastructure
      - HRM
      - Tech. Development
      - Procurement: finding suppliers with best deal of price
- - - - economies of scale; synergies
      - May exploit a core competency
      - Has commonalities
    - - Lack of commonalities
      - Aim for high ROI
      - bargain price
      - potential to restructure a firm
      - !: Avoid entering ventures with little expertise. To reduce the risk of failure.
      - May merge with a CASH COW to reduce the need to raise debt
    - - How attractive: strong profit potential?
      - How much $ cost: can recoup the exp?
      - will be better off?
  - - - commodity type product
      - competitors use a low cost of position
      - universal needs of customers
    - - customer's tastes and preferences
      - differences in infrastructure or traditional practice
      - differences in distribution channels
      - Demand of host government
  - - - Why great business not deliver the result it deserves?
        
        Understanding of the nature of existing prospect Profit Pools
        
        GAAP distorts the real profit picture
        
        Right information, right skills
        
        expense allocations
        
        limited competitor/partner info
        
        Management not focus on profit pools
      - What? It is part of market that offers some sort of economic return to participant players
      - 3 Types
        
        Existing Profit Pools (Exploiter)
        
        rich source of improved performance and profitability
        
        Need to: have a solid understanding of competitor, partner, customer economics, now and into future; to see opportunities and tradeoffs, predict behaviours of other players and customers.
        
        New & Charted Profit Pools (Risk taking incrementalist)
        
        Important: look externally , at competitors and others;
        
        Make sure they only grow in positive profit pools
        
        Need info about what competitors are not penetrated about; economics of competitors and channel business models, market unit demand, customer value proposition and other existing and future factors.
        
        External information is available (GAAP)
        
        (-) there is existing commercial model in the market, result in less scope for new entrants to define market structure to their terms and strength.
        
        New & Uncharted Profit Pools
        
        Need same info as charted p.p
        
        higher risk: need to better understand the probabilities of outcomes
      - Goal: to generate positive impact on future cash flow
      - LOOK AT: if the most profitable area is where generates the biggest revenues??
- - - - competitive characteristics that differentiate firms in an industry from one another, group on y and x axis.
      - Plot all firms in the same graph
      - assign firms in similar space--similar strategic group
      - take those groups and circle them--the circle is proportional to the market share of the group