FORUM - Chapter 6 - "BCG Matrix"

In order to address the course learning objective. "...demonstrate your ability to justify if current Corporate Strategies work to achieve competitive advantage'..."

The BCG Matrix is used to analyze the different businesses units or product lines that may be contained within one firm (see Exhibit 6.4 ... p. 184). In order to simulate this analysis, I have adapted this concept to represent a portfolio of firms, as opposed to a portfolio of business units.

Assume (as on the Exhibit) that the baseline Industry Growth Rate is 10%.... Indicating that:

• a firm with a higher rate is high-growth and
• a firm with a lower rate is low-growth

Assume (as on the Exhibit) that the baseline Relative Market Share is 1.0 X

• a firm with a higher rate has a "high" - market share
• a firm with a lower rate has a "low" - market share

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Given this ... please classify the firms in the table as ... Star ... Cash Cow ... Question Mark (Problem Child) ... or Dog.

(Note, these numbers are just for demonstrative purposes and do not necessarily reflect the current conditions of the firms. So do not rush out and sell your stock!!)

	Company	Relative Market Share	Firm growth rate	Category ?
1	Netflix	4X	8(%)
2	Walgreens	0.2X	15
3	Ford	2X	12
4	Best Buy	0.7X	4
5	General Electric	0.6X	13
6	Target	5X	6
7	Nokia	0.3X	7
8	Apple	6X	20

1. Given this ... please classify the firms in the table as ... Star ... Cash Cow ... Question Mark (Problem Child) ... or Dog.