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The BCG Competitive

Advantage Matrix
Number of Approaches
to Achieve Advantage
Few Many
Advantage

Large
Size of the

Volume Specialized

Small Stalemated Fragmented


Product Differentiation

Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality

Dura- Relia- Repair-


Style Design
bility bility ability
Services Differentiation

Ordering Customer
Installation

Miscellaneous
Ease Consulting

Services
Customer Maintenance
Delivery
Training & Repair
Differentiation
• Personnel
• Channel
Image Differentiation

Media Atmosphere

Symbols

Events
Important

Profitable Distinctive

Di fferences Worth
Estab lishi ng
Affordable Superior

Preemptive
Pos iti oni ng is the act
of desi gni ng the
com pany’ s offeri ng
and i mage to occupy a
di sti ncti ve pl ace in
the the target
Perceptual Map
Live shows 1.0
Easy to reach Little waiting
Good food 0.8
Fantasy Educational,
0.6 animals
Exercise Marineland
0.4
Fun rides Knott’s of the
Berry Japanese Pacific
0.2 Deer Park
Disneyland Farm

-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
-0.2
Magic Lion
Mountain -0.4 Country
Busch Safari
-0.6 Gardens
-0.8 Economical
Sales & profits ($) Sales & Profit Life Cycles

Introduction Growth Maturity Decline

Time
Four Introductory
Marketing Strategies
Promotion
High Low

Rapid- Slow-
High skimming skimming
strategy strategy
Price
Rapid- Slow-
Low penetration penetration
strategy strategy
Maturity Stage
• Market Modification
• Product Modification
• Marketing-Mix Modification
Decline Stage
• Increase investment
• Resolve uncertainties - stable investment
• Selective niches
• Harvesting
• Divesting
Market Evolution
• Emergence
• Growth
• Maturity
• Decline
Market-Fragmentation and
Market-Consolidation Strategies
(a) Market-fragmentation (b) Market-consolidation
stage stage

C H C
AB
DE
H DE AB
JK
J XYZ X YZ

K FG
FG
M L M
L
Review
• Identify Differentiating Attributes
• Choosing & Communicating Effective
Positioning
• Marketing Strategies Along the Product
Life Cycle
• Marketing Strategy & Market Evolution

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