Stars
Question
Marks “ To be successful, a
company should have a
GROWTH
portfolio of products with
different growth rates and
Cash different market shares.
Dogs
Cows
4
SHARE -- Bruce Henderson, BCG’s founder ”
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
GROWTH
5 SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
High Low
High
GROWTH
CASH COW DOGS
Low
6 SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
High Low
High
GROWTH
CASH COW DOGS
Low
7 SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Question
Stars
Marks
GROWTH
Cash
Dogs
Cows
8 SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Make further
investments, either
Continue doing the
to maintain the
same things to
maintain the status HOLD BUILD market share of
Star, or make a
quo
Question Mark into
a Star
9
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
GROWTH
• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
SHARE
10
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
GROWTH
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meis dicta eloquentiam at. Eius
forensibus usu cu impetus
Cash tamquam te cum, eu eam
Dogs
Cows
Lorem ipsum dolor sit amet, has
meis dicta eloquentiam at. Eius
SHARE forensibus usu cu impetus
tamquam te cum, eu eam
11
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
SHARE
High Low
GROWTH
12
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks “
Many “businesses” require
GROWTH
CASH USE
far more cash input than
Cash they can ever generate.
Dogs
Cows
13
SHARE
CASH GENERATION
-- Bruce Henderson, BCG’s founder ”
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at http://www.bcg.com/documents/file13904.pdf
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks “A few businesses generate
GROWTH
CASH USE
far more cash than they
Cash can profitably reinvest.
Dogs
Cows
14
SHARE
CASH GENERATION
-- Bruce Henderson, BCG’s founder ”
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at http://www.bcg.com/documents/file13904.pdf
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks “A few businesses are self-
GROWTH
sufficient in cash flow. Over
CASH USE
time they will become
much larger and also large
Cash net generators of cash.
Dogs
Cows
15
SHARE
CASH GENERATION
-- Bruce Henderson, BCG’s founder ”
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at http://www.bcg.com/documents/file13904.pdf
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks “ Most businesses, however,
generate very little cash even
GROWTH
CASH USE
thought they use little. The
reported earnings must be
reinvested and probably
Cash always will. These businesses
Dogs
Cows are “cash traps”.
16
SHARE
CASH GENERATION
-- Bruce Henderson, BCG’s founder ”
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at http://www.bcg.com/documents/file13904.pdf
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
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eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus usu dicta eloquentiam at. Eius forensibus usu
GROWTH
cu impetus tamquam te cum, eu eam cu impetus tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis dicta Lorem ipsum dolor sit amet, has meis dicta
eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus usu dicta eloquentiam at. Eius forensibus
cu impetus tamquam te cum, eu eam usu cu impetus tamquam te cum, eu
SHARE
17
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
GROWTH
HIGH MARKET SHARE LOW MARKET SHARE
SHARE
18
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
BU
BU #1 #2
BU
GROWTH
#4
BU
#6
BU
#9
BU
#5 BU #10
BU
#7
SHARE
19
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 1
High
GROWTH
Cash Cows Dogs
Low
SHARE
20 High Low
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 1/3
Relative Market
Market Share Growth Risk Level
STARS
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
CASH COWS
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
21
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 2/3
Relative Market
Market Share Growth Risk Level
QUESTION MARKS
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
DOGS
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
22
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 3/3
• Entry 8 • Entry 8
• Entry 9 • Entry 9
“
Strong Medium Low
Invest /
High
ATTRACTIVENESS
systematic approach for
MARKET
Selectivity
Medium
Divest
business units.
”
BUSINESS STRENGTH
25
Source: McKinsey, “Enduring Ideas: The GE–McKinsey nine-box matrix”, from www.mckinsey.com/
accessed at http://www.mckinsey.com/insights/strategy/enduring_ideas_the_ge_and_mckinsey_nine-box_matrix
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
ATTRACTIVENESS
tamquam te cum, eu eam
MARKET
Selectivity Lorem ipsum dolor sit amet, has
Medium
Divest
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BUSINESS STRENGTH meis dicta eloquentiam at. Eius
forensibus usu cu impetus
tamquam te cum, eu eam
26
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
MARKET
Invest Protect Harvest ATTRACTIVENESS
27 BUSINESS STRENGTH
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
MARKET
Invest Protect Harvest ATTRACTIVENESS
28 BUSINESS STRENGTH
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
High
Medium
MARKET
ATTRACTIVENESS
Low
29 BUSINESS STRENGTH
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
High Invest /
Grow
Medium
MARKET
Protect
ATTRACTIVENESS
Harvest /
Low
Divest
30 BUSINESS STRENGTH
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
High
Invest Invest Protect
ATTRACTIVENESS
MARKET
Invest Protect Harvest
Low
BUSINESS STRENGTH
31 High Low
GE / MCKINSEY MATRIX
WORKSHEET 1
High
ATTRACTIVENESS
MARKET
Low
BUSINESS STRENGTH
32 High Low
GE / MCKINSEY MATRIX
WORKSHEET 2
Business Strength
High Medium Low
High • Entry 1 • Entry 1 • Entry 1
• Entry 2 • Entry 2 • Entry 2
• Entry 3 • Entry 3 • Entry 3
• Entry 4 • Entry 4 • Entry 4
• Entry 5 • Entry 5 • Entry 5
• Entry 6 • Entry 6 • Entry 6
Market Attractiveness
“
Internal
Strengths Weaknesses SWOT analysis entails a distillation of
the findings of an internal and
external audit that draws attention,
from a strategic perspective, to the
critical organizational strengths and
weaknesses and the opportunities
External
Opportunities Threats and threats facing the organization
35
Positive Negative
-- Kotler and Armstrong, 2011 ”
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
External
Positive Negative
36
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
STRENGTHS WEAKNESSES
Internal
OPPORTUNITIES THREATS
External
Positive Negative
37
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
Strengths Weaknesses
External
Opportunities Threats
Positive Negative
38
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
S W
Internal
Strengths Weaknesses
External
Opportunities Threats
O T
Positive Negative
39
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
S W
Internal
Strengths Weaknesses
External
Opportunities Threats
O T
Positive Negative
40
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
Strengths Weaknesses
S W
O T
External
Opportunities Threats
Positive Negative
41
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
Strengths Weaknesses
S W
O T
External
Opportunities Threats
42 Positive Negative
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Characteristics
Characteristics of
that place the
the business or
Internal
business or
project that give Strengths Weaknesses project at a
it an advantage
disadvantage
over others
relative to others
Elements in the
Elements that environment that
External
the project could could cause
exploit to its
Opportunities Threats trouble for the
business or
advantage project
Positive Negative
43
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
• What unique or lowest-cost resources can we
• What are people in our market likely to see as
draw upon that others can't?
• What do people in our market see as our Strengths Weaknesses •
weaknesses?
Is our intellectual property outdated?
strengths?
• What connections and alliances should we
• What factors mean that you "get the sale"?
have, but don’t?
• What connections and alliances do we have?
External
• Useful opportunities can come from such • Are quality standards or specifications for our
things as: job, products or services changing?
Changes in technology and markets on Opportunities Threats • Is changing technology threatening our
both a broad and narrow scale position?
Changes in government policy related to • Do we have bad debt or cash-flow problems?
your field. • Could any of our weaknesses seriously
Changes in social patterns, population threaten our business?
profiles, lifestyle changes, etc.
Positive Negative
44
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
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Strengths Weaknesses • Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
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• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
External
Eius forensibus usu cu impetus tamquam te cum, eu eam
Opportunities Threats • Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
Positive Negative
45
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Internal
Strengths Weaknesses forensibus usu cu impetus
tamquam te cum, eu eam
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meis dicta eloquentiam at. Eius
forensibus usu cu impetus
External
Opportunities Threats tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has
meis dicta eloquentiam at. Eius
Positive Negative forensibus usu cu impetus
tamquam te cum, eu eam
46
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
Positive Negative
47
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
“
Internal
Strengths Weaknesses
Strengths
internal capabilities that
may help the company
External
Opportunities Threats reach its objectives.
48
Positive Negative
-- Kotler and Armstrong, 2011 ”
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
“
Internal
Strengths Weaknesses
Internal limitations that
may interfere with the
company’s ability to
achieve its objectives.
External
Opportunities Threats
49
Positive Negative
-- Kotler and Armstrong, 2011 ”
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
“
Internal
Strengths Weaknesses
External factors that the
company may be able to
exploit to its advantage.
External
Opportunities Threats
50
Positive Negative
-- Kotler and Armstrong, 2011 ”
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
“
Internal
Strengths Weaknesses Current and emerging
external factors that may
challenge the company’s
External
Opportunities Threats performance.
51
Positive Negative
-- Kotler and Armstrong, 2011 ”
SWOT / TOWS ANALYSIS MATRIX
THE COMPETITIVE ANALYSIS MATRIX
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eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
Internal
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dicta eloquentiam at. Eius forensibus dicta eloquentiam at. Eius forensibus
cu impetus tamquam te cum, eu eam cu impetus tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis dicta Lorem ipsum dolor sit amet, has meis dicta
eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
External
Lorem ipsum dolor sit amet, has meis Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus dicta eloquentiam at. Eius forensibus
cu impetus tamquam te cum, eu eam usu cu impetus tamquam te cum, eu
Positive Negative
52
SWOT / TOWS ANALYSIS MATRIX
WORKSHEET
Positive Negative
Internal
• Entry 1 • Entry 1
• Entry 2 • Entry 2
• Entry 3 • Entry 3
• Entry 4 • Entry 4
• Entry 5 • Entry 5
• Entry 6 • Entry 6
• Entry 7 • Entry 7
• Entry 8 • Entry 8
• Entry 9 • Entry 9
External
• Entry 1 • Entry 1
• Entry 2 • Entry 2
• Entry 3 • Entry 3
• Entry 4 • Entry 4
• Entry 5 • Entry 5
• Entry 6 • Entry 6
• Entry 7 • Entry 7
• Entry 8 • Entry 8
• Entry 9 • Entry 9
53
04
Porter’s Generic Competitive
Strategies
The Competitive Advantage Matrix
“
Industrywide
Overall Cost The generic strategies are
Differentiation approaches to outperforming
Leadership
Strategic Target
Segment Only
Particular
just to obtain acceptable returns in an
Focus
”
absolute sense.
“
Industrywide
Overall Cost The firm failing to develop its
Differentiation
Leadership strategy in at least one of the
Strategic Target
Segment Only
Particular
situation.
”
Focus
Cost
“
Broad
Leadership
Differentiation The generic strategies are
approaches to outperforming
Competitive Scope
Narrow
Differentiation
Cost Focus just to obtain acceptable returns in an
Focus
”
absolute sense.
Broad
Competitive Scope
Narrow
Low Cost Differentiation
58
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Broad
Competitive Scope
Narrow
Low Cost Differentiation
59
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Broad
Competitive Scope
Narrow
Low Cost Differentiation
60
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Broad
Cost Leadership Differentiation
Competitive Scope
Narrow
Differentiation
Cost Focus
Focus
Broad
Cost Leadership Differentiation
Competitive Scope
Narrow
Differentiation
Cost Focus
Focus
SOURCE
Low Cost Differentiation
SCOPE
63
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Broad
Cost Leadership Differentiation
Competitive Scope
Narrow
Differentiation
Cost Focus
Focus
Broad
Cost Leadership Differentiation
Competitive Scope
Narrow
Differentiation
Cost Focus
Focus
Broad
range of Cost Leadership Differentiation positions across
product a whole range
offerings Competitive Scope of offerings
Narrow
Differentiation
in a small Cost Focus in specific
Focus
cluster of target target
segments segments
Broad
Eius forensibus usu cu impetus tamquam te cum, eu eam
Differentiation •
Leadership Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
Competitive Scope
• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
Narrow
Differentiation Eius forensibus usu cu impetus tamquam te cum, eu eam
Cost Focus •
Focus Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
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• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
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67
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Source of Competitive Advantage
Broad
Differentiation forensibus usu cu impetus
Leadership
Competitive Scope
Narrow
Differentiation tamquam te cum, eu eam
Cost Focus
Focus
Lorem ipsum dolor sit amet, has
meis dicta eloquentiam at. Eius
Low Cost Differentiation forensibus usu cu impetus
tamquam te cum, eu eam
68
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Strategic Advantage
“
Industrywide
Cost leadership requires aggressive
Cost
Differentiation construction of efficient-scale facilities,
Leadership
Strategic Target
Segment Only
Particular
sales force, advertising, and so on.
Focus
69
Uniqueness Perceived
by the Customer
Low Cost Position
-- Michael E. Porter, 1980 ”
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Strategic Advantage
“ Approaches to
Industrywide
Cost
Differentiation differentiating can take
Leadership
Strategic Target
Segment Only
service, dealer network, or
Particular
Focus
”
other dimensions.
Uniqueness Perceived Low Cost Position
by the Customer -- Michael E. Porter, 1980
70
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Strategic Advantage
Industrywide
Cost
Differentiation
Leadership built around serving a
Strategic Target
Segment Only
Particular
Focus mind.
71
Uniqueness Perceived
by the Customer
Low Cost Position
-- Michael E. Porter, 1980 ”
PORTER’S GENERIC COMPETITIVE STRATEGIES
THE COMPETITIVE ADVANTAGE MATRIX
Strategic Advantage
“
Industrywide
Cost The firm failing to develop its
Differentiation
Leadership strategy in at least one of the
Strategic Target
Segment Only
Particular
strategic situation.
”
Focus
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eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
Broad
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dicta eloquentiam at. Eius forensibus dicta eloquentiam at. Eius forensibus
Competitive Scope
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eloquentiam at. Eius forensibus usu cu impetus eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam tamquam te cum, eu eam
Narrow
Lorem ipsum dolor sit amet, has meis Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus dicta eloquentiam at. Eius forensibus
cu impetus tamquam te cum, eu eam usu cu impetus tamquam te cum, eu
Entrants
Industry
Competitors
Suppliers Buyers
Rivalry Among
Existing Firms
Substitutes
Bargaining power
of suppliers
Industry
Suppliers Competitors Buyers
Rivalry Among Existing Firms
Bargaining power
of buyers
Threat of substitute
products or services
Substitutes
75
Source: Porter, M.E., "Competitive Strategy" (1980)
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION – THE ORIGINAL MODEL
Threat of new
Potential entrants
Entrants
Bargaining power
of suppliers
Industry
Suppliers Competitors Buyers
Rivalry Among Existing Firms
Bargaining power
of buyers
Substitutes
Threat of substitute
products or services
76
Source: Porter, M.E., "Competitive Strategy" (1980)
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
Potential
Entrants
Industry
Competitors
Suppliers Buyers
Rivalry Among
Existing Firms
Substitutes
77
Source: Porter, M.E., "Competitive Strategy" (1980)
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
Potential
Entrants
Industry
Competitors
Suppliers Buyers
Rivalry Among
Existing Firms
Substitutes
78
Source: Porter, M.E., "Competitive Strategy" (1980)
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
Potential
Entrants
Industry
Suppliers Buyers
Rivalry
Substitutes
79
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
Potential
Entrants
Industry
Suppliers Buyers
Rivalry
Substitutes
80
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
“
Threat of new
Potential entrants
Entrants
The collective strength of
Bargaining power
of suppliers
these forces determines the
Suppliers
Industry
Buyers
ultimate profit potential in the
Competitors
Rivalry Among Existing
Firms
industry, where profit potential
Bargaining power
of buyers is measured in terms of long
run return on invested capital.
Substitutes
”
Threat of substitute
products or services
“
Potential
Entrants
The collective strength of
Industry these forces determines the
Competitors ultimate profit potential in the
Suppliers Buyers
industry, where profit potential
Rivalry Among
Existing Firms is measured in terms of long
run return on invested capital.
82
Substitutes
Suppliers Buyers
Where close substitute Rivalry Among
products exist in a Existing Firms An assessment of how
market, it increases the
likelihood of customers easy it is for buyers to
switching to alternatives
in response to price drive prices down
increases Substitutes
83
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
Suppliers Buyers
Insert any title here
Rivalry Among
Existing Firms • Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
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• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
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• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Substitutes Eius forensibus usu cu impetus tamquam te cum, eu eam
84
PORTER’S FIVE FORCES MODEL
FORCES DRIVING INDUSTRY COMPETITION
“
Potential
Entrants
New entrants to an
Industry
Competitors industry bring new
Suppliers Buyers capacity, the desire to gain
Rivalry Among
Existing Firms
market share, and often
substantial resources.
86
Substitutes
“
Potential
Entrants
Buyers compete with the
Industry
industry by forcing down
Competitors prices, bargaining for higher
Suppliers Buyers quality or more services, and
Rivalry Among playing competitors against
Existing Firms
each other -all at the expense
of industry profitability.
87
Substitutes
“
Potential
Entrants
Substitutes limit the
Industry potential returns of an
Competitors
industry by placing a ceiling
Suppliers Buyers
Rivalry Among
on the prices firms in the
Existing Firms
industry can profitably
charge.
88
Substitutes
“
Potential
Entrants Suppliers can exert
bargaining power over
Industry
Competitors participants in an industry
Suppliers Buyers by threatening to raise
Rivalry Among
Existing Firms
prices or reduce the quality
of purchased goods and
”
services.
Substitutes
“
Potential
Entrants
Rivalry among existing
competitors takes the familiar
Industry
Competitors form of jockeying for position -
Suppliers Buyers using tactics like price
Rivalry Among competition, advertising
Existing Firms
battles, product introductions,
and increased customer
90
Substitutes service or warranties.
THREAT OF SUBSTITUTION
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
91
PORTER’S FIVE FORCES
WORKSHEET 2
92
PORTER’S FIVE FORCES
WORKSHEET 3 – 1/3
Ability to
control Impact Level Risk Level
COMPETITIVE RIVALRY
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
93
PORTER’S FIVE FORCES
WORKSHEET 3 – 2/3
Ability to
control Impact Level Risk Level
THREAT OF NEW ENTRY
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
THREAT OF SUBSTITUTION
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
94
PORTER’S FIVE FORCES
WORKSHEET 3 – 3/3
Ability to
control Impact Level Risk Level
SUPPLIER POWER
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
BUYER POWER
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
95
06
Market Product
Penetration Development
Market
Diversification
Development
Ansoff Matrix
The Product-Market Growth Matrix
“
Existing
Market Product There are four basic growth
Penetration Development alternatives open to a business. It can
grow through increased market
Market
New
Diversification
Development
diversification.
97
Existing New
-- H. Igor Ansoff, 1957 ”
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product
Penetration Development
Market
Market
New
Diversification
Development
Existing New
98
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product
Penetration Development
Market
Market
New
Diversification
Development
Existing New
99
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product
Penetration Development
Market
New
Diversification
Development
Existing New
100
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
PRODUCTS
Existing New
MARKET
101
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product
an existing products with
Penetration Development
market with an existing
existing product Market markets
Finding or
Creating new
creating new
Market product lines or
New
markets for Diversification
Development ranges for sale
existing
in new markets
products
Existing New
102
Source: LaChapelle, Neil (2008) “The Structure of Concern: A Challenge for Thinkers”
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product Eius forensibus usu cu impetus tamquam te cum, eu eam
Penetration Development • Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
Market
New
Diversification •
Development Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
• Lorem ipsum dolor sit amet, has meis dicta eloquentiam at.
Eius forensibus usu cu impetus tamquam te cum, eu eam
Existing New
103
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
Existing
Market Product
Penetration Development forensibus usu cu impetus
tamquam te cum, eu eam
Market
New
Diversification tamquam te cum, eu eam
Development
Lorem ipsum dolor sit amet, has
meis dicta eloquentiam at. Eius
Existing New forensibus usu cu impetus
tamquam te cum, eu eam
104
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
“
Existing
Market Product Market penetration is an effort to
Penetration Development increase company sales without
departing from an original product-
Market
New
Diversification
Development customers for present products.
105
Existing New
-- H. Igor Ansoff, 1957 ”
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
“
Existing
Market Product
Penetration Development
A product development
strategy, retains the present
mission and develops products
Market
New
Diversification the mission.
Development
106
Existing New
-- H. Igor Ansoff, 1957 ”
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
“
Existing
Market Product
Penetration Development
Market development is a
strategy in which the company
attempts to adapt its present
Market
New
Diversification missions.
Development
107
Existing New
-- H. Igor Ansoff, 1957 ”
ANSOFF MATRIX
THE PRODUCT-MARKET GROWTH MATRIX
Products
“
Existing
Market Product
Penetration Development
Diversification is the final
alternative. It calls for a
Market
New
Diversification
Development
108
Existing New
-- H. Igor Ansoff, 1957 ”
ANSOFF MATRIX
WORKSHEET 1
Products
Existing New
Existing MARKET PENETRATION PRODUCT DEVELOPMENT
• Entry 1 • Entry 1
• Entry 2 • Entry 2
• Entry 3 • Entry 3
• Entry 4 • Entry 4
• Entry 5 • Entry 5
• Entry 6 • Entry 6
• Entry 7 • Entry 7
• Entry 8 • Entry 8
• •
Market
Entry 9 Entry 9
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
MARKET DEVELOPMENT
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
110
ANSOFF MATRIX
WORKSHEET 2 – 2/2
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
DIVERSIFICATION
• Entry 1
• Entry 2
• Entry 3
• Entry 4
• Entry 5
111
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