BCG MATRIX

Cash Cow: -High mkt. Share in slow growing industry -Generates excess cash -Mature and successful business -Low investment required -Needs to be managed for continued profit

Dogs: -Low mkt. Share in slow growing industry -Tends to reduce RoA -Might generate cash to breakeven

 Question Mark: -Low mkt share in high growth mkt -Has potential but requires substantial investment. -If QM does not become mkt.ldr could become dog

 Stars -High mkt share in fast growing industry -Needs investment to sustain growth

 Strategies Cos. Could adopt: A.Build Share : increase mkt share. ??- * B.Hold : Invest just enough to keep SBU in present position C. Harvest: Reduce investment to maximise short term cash flow *- cash Cow D. Divest:By phasing out non profitable ventures

PORTER 5 FORCE MODEL

1.Threat of entry of new competitor: -Barriers to entry(High entry & low exit) -Brand Equity -Customer Loyalty -Industry profitability

2. Threat of Substitute pdts or services -Relative Price -Buyer Switching Cost -Perceived level of pdt differentiation -Qlty depreciation -Ease of substitution

3.Bargaining Power of Customer: -Buyer Volume -Buyer info. Availability -Buyer price sensitivity -Bargaining Leverage

 4. Bargaining Power of Suppliers: -Supplier switching cost -Strength of distribution of distribution channels -Presence of substitutes inputs

PORTER GENERIC STRATEGIES

1. Cost Leadership: - Low cost advantage through EoS -Lower Operational Cost -Use Low cost to defend against substitutes -Increase reach -Protect from powerful suppliers

 2.Differentiation: -Satisfy customer needs through sustainable competitive advantage -Desensitize price & focus on value -Addl. Cost in creating comp. Adv to be offset by increase in revenue. -increase customer attachment

3.Focus: -could be cost or differentiation -analyse industry in which to compete -analyse competition -strategy implementation to be in sync. With firm s activities

SWOT ANALYSIS
Leverage on Strength(internal) Identify oppurtunities(macro environment) Analyse Weakness(internal) Focus on threat (macro environment)