Question: This case is based entirely on hypothetical information please use only the information in the case and do not use any information about the products/brands

This case is based entirely on hypothetical information please use only the information in the case and do not use any information about the products/brands through other sources. Ensure that you study Chapter 2 of the textbook for the BCG Growth Share Matrix and Diversification Analysis/Market Product strategies and Matrix. Please do internet based research to understand the concepts of Harvest, Invest, and Divest)

The firm Johnson-Evinrude Inc (or JE, to keep it short) has been in existence for more than two decades. However it is confronted by a changing technological and market environment.

While it is well known for the manufacture and sale of two stroke boat motors that have enjoyed a positive reputation, it is now facing increasing competition from four stroke boat motors. In terms of market growth the highest growth rates are being experienced for four stroke-high horse power motors; Johnson is testing motors of this type but their products seem to have multiple defects. The same type of motors of Japanese brands are flawless. It is true that in traditional two-stroke high horse power motors Johnson has a high market share almost 65%, but this type of motor has almost no growth in the industry as a whole.

In the low horse power, 2 stroke market Johnsons share is minor and in the industry it is low horse power four stroke motors that have a rapidly growing market. JE do not have any of their own products in this category. Many Chinese manufacturers make these as generic unbranded products and the Chinese products are of low cost and good quality

JE has also been marketing trolling electric motors. The JE design is very well regarded in industry and with fishing gaining popularity as a sport trolling motors is a growth area. However, Johnsons share is not as high as it could be because of inexpensive Chinese substitutes. While the Chinese products take advantage of lower manufacturing costs they lack the design sophistication of JE products.

Questions: Discuss the above from the perspective of :

1. Product portfolio management (the BCG or Growth Share Matrix approach)-for this classify the different types of motors in terms of the BCG Matrix Rate of Growth of the Industry and Market Share of the Firm; Cash Cows, Dogs, Stars, Question Marks; make sure that you do this for every type and category of motor.

2. Try to analyze the portfolio/different motor categories in terms of the diversification or product market matrix

3. Make suggestions for the overall marketing strategy for JE. You may like to classify products (whether current or planned) and then develop your approach for them.

4. Discuss the possible problems that the comp

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!