Page 39 - Portfolio Analysis
P. 39

TUTORIAL



               EXERCISE 1


               Given the following characteristics show the position of the products and
               indicate their likely potential movement thereafter:





               a) Relative market growth rate = 14%   Relative market share is twice that
               of the                       next largest competitor.


                                                 In this example the company has high market share
                                                 and high market growth  the combination of which
                                                 places the company in the star quadrant. Potential for
                                                 further growth is still evident.


                                       High
                                                                                       ?

                  Market
                  Growth
                  Rate             Cash Use






                                        Low

                                                 High            Cash Generation            Low


                                                                     Market  Share
   34   35   36   37   38   39   40   41   42   43   44