Page 283 - E2 Integrated Workbook STUDENT 2018
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Answers to supplementary objective test questions
CHAPTER 5 – COMPETITOR ANALYSIS
5.1 D Cash Cow
In the Boston Consulting Group model a product analysed as having a relatively
high market share in a market with low growth would be categorised as a cash
cow.
The BCG matrix breaks a business into its component units or products and
then considers the performance of each unit/product in terms of the growth
(usually measured by revenue) and the relative market share.
The complete model is shown below:
Market growth high low CASH COW QUESTION
STAR
MARK
DOG
high low
Relative market share
5.2 ABC and BCD are BRAND competitors.
KLM and LMN are GENERIC competitors.
DEF and EFG are FORM competitors.
Industry competitors are companies who produce similar goods but who are not
necessarily the same size or structure.
5.3 The correct statements are A and D
In addition, Porter suggested that companies should identify competitor’s
strategy and objectives.
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