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How can a business use the BCG matrix to analyze its portfolio of products or services?
How can a business use the BCG matrix to analyze its portfolio of products or services? The key is to ask its customers what they want—the “tangible” as you put it—and then make sure to deliver it to them. That is, of course, one way for a company satisfy its ultimate customer. But it is an unpopular method in many segments today. Often the hard part of this thinking is that it can be hard to untangle the real customers that an organization should care go to my blog from the perceived customers that it should care for. These are the customers who purchase from or through its many business ventures. But what if these customers are just as important as the ultimate customers? What’s even more tragic, CEOs in most cases are unwilling or even inept at developing tactics to serve them. You can argue that they at least know who their ultimate customers are, right? And while they may sometimes get distracted by shiny pursuits (think of Google with its so-called moon shot projects), what they fail to realize (or ignore because they do not have a roadmap themselves) is that they are also building a portfolio of products and services that will in time be key to delivering highly desired goods and services to ultimate customers. There is no single way to do this, but thinking that a business looks for products or services that are already desired seems not to be helpful: rather, the company would likely need to build these products or services in view of what its customers already want, including more desired and services. There is no better place to start with this activity than to analyze existing market opportunities in today’s complex market, are nearly impossible to find. What is important to keep in mind here is that every organization is different and thus its individual portfolio will be different. My main point in all this is that most CEOs wrongly believe that their market opportunities are easier to find than they are as their company portfolios also include non-desired prospects that will become key to delivering future products and services. But they don’t How can a business use the BCG matrix to analyze its portfolio of products or services? Which products or services? How must the existing marketing organization’s structure change in order for its products or services to be aligned with matrix categories? Market-Competitive Analysis What are the main market conditions in the various industries you analyze? – Which companies are the most important in your industry? – What competitive dynamics are shaping the market that you have identified? – What is the relative competitiveness of each company in your industry? All competitor products and services are organized by the different industry divisions of the BCG matrix between the lines. This includes the level of competition for each of the product and service areas, the operating and financial processes by which the company’s products and services are sold, the value that customers place upon each area of a company’s offering, and how much attention companies are devoting to each of the product and service offerings in their portfolio.
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Brand Differentiation Analysis What are the driving factors that will shape the market? – What are the current obstacles to market success? What are the barriers preventing companies from selling their products and services? In particular, what hinders internal sales and marketing efforts? How would your organization’s product portfolio need to change? – What must companies have to offer to competitive successfully today and in the future? What are the forces that will shape consumer purchasing behavior? Go back to the marketplace. What features or benefits does a potential buyer consider when choosing a product or service? Which of your products must have these features or benefits in order to be successful? What changes will be required in products and services to remain competitive? – To maintain or increase market share? – To gain market share? – To be more different than competitors? In order to ensure that their brands stand out from those of their competitors, businesses must differentiate themselves by carefully considering the attributes and characteristics that potential customers consider most important in a product or How can a business use the BCG matrix to analyze its portfolio of products or services? Perhaps, you could think about the “products side” of the matrix. In particular, you could think about the key capabilities you need to survive the current environment and transform them into the new “business architecture needed” for the future. Or you could think about the “people side” of the matrix. As business leaders we know very well that the core competence of any business is always its people. No matter what of product you create, or how good the service, customers will always be your first consideration. People are what enable the core to deliver the next level of business success after you make it. Here are six ways to think about people. – Are you winning the people game? Are you acquiring or retaining high-value assets? Acquiring and retaining high-value assets is the basis of a sustainable organization. Always think about which assets you need to thrive in a sustainable way in your business. – When is optimal working time for your people? When are your employees making most of their difference? There’s nothing ‘optimal’ about the standard office 9-5 in many of today’s businesses. An ‘optimal’ working time for a person, or team will depend on their work. – When should you choose a high- or low-growth way of People are forever asking me: “What should I care about? Big growth or small growth?” The answer is always growth.
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If you are not growing, you will get ignored. After working with leading companies for 50 years, the most common definition of growth is “just managing“. Many of the most successful organizations have been doing just managing for years. – Who are your connectors? Try This It’s often those low level people, the connectors, who bring both simple and highly complex ideas to life. They may not rise to the top or be rewarded with bigger