Burberry
According to the Boston Consulting Group, Burberry had settled into a position somewhere in between a cash cow and a dog. The market for fashion, particularly in the UK, was in a state of maturity and slow growth. The Burberry brand was successful, a trait of a cash cow, but had also grown tired, a dog trait. Thus, the brand was beginning to move in the wrong direction. The response on the part of management was to reposition in the brand so that the brand would grow, no matter what the state of the market in the UK was like.
The Ansoff Matrix breaks down a company in terms of how it can grow, with a combination of existing or new markets and existing products and new products. At Burberry, the company decided to grow using both new products and new markets, but without ignoring the traditional success of the company. So for example, the firm brought in new designers in order to freshen up the company's designs -- the people that made Burberry hip in the early 60s are now elderly, so have little appeal to a younger generation. Thus, the company has moved to bringing out new designs and new products in order to appeal to younger consumers.
In addition, Burberry has recognized that there is only so much growth to be had in the British market, and taken its expansion plans overseas. The company saw growth in markets in the Middle East, Asia and China in particular, in addition to gaining strength in other Western markets. While pursuing these new markets and new products, the company retained its brand strength by continuing to use staple designs of the company. The biggest issue for Burberry was actually maintaining the strength of its brand in the UK, where it became associated with chav culture, arguably through knockoffs. That said, the company never wanted to lose the strength of its core UK market.
The UK image challenge actually is a challenge of positioning. According to Porter's typology, Burberry pursues a differentiated strategy. The company aims to reach a relatively mass market, but to do so with a highly differentiated product lineup, based on signature motifs, unique product designs and strong branding. What the image problem in the...
BCG Matrix According to the BCG Matrix, the electronics category is a question mark characterized by low market share, but potential high growth. In this instance, a decision must be made to invest heavily, sell off or invest nothing and generate whatever cash is possible (BCG Matrix). Appliances, on the other hand, are cash cows enjoying high market share, but little growth. Because growth is low, investments should be kept to
BCG Matrix Strategic Management The BCG Matrix: An overview and a hypothetical situation The Boston Consulting Group (BCG) Matrix is an efficient way to visually represent a company's portfolio of goods and services, and provides a way for organizations to evaluate their strategic possibilities. The BCG Matrix classifies a company according to three primary business interests or units (BCG Matrix, 2012, Net MBA). The Matrix is represented in the form of four quadrants:
BCG Matrix, an analytic tool designed and named for the Boston Consulting Group, provides insight into corporate strategy regarding a company's operating units and products. The focus of the matrix is on "market growth and market share of the organization's product portfolio relative to their largest competitor" (NetMBA.com. N.D. PP. 1). Companies should according to the matrix, allocate capital to portfolio investments which are in a fast growing market that
Items such as the potential partner's track record for development efficiency was a definite strength. In contrast, one weakness was the sharing of profits once the product went to market, as well as the fact that our company would not have sole ownership of the product. There was the opportunity to bring the product to market ahead of any potential competitors, plus the opportunity to develop a relationship that
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3. Limitation of individual model - synergies obtained by combining strategic analyses models All analysis models presented in the previous chapter represent useful but not exhaustive methods of deciding the future of a company or its products. As there is no perfect model, the joint usage of them might bring most value to the company. Ansoff analysis generally assumes that diversification will bring higher returns when higher levels of risks are undertaken (diversifying
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