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