Strategic Market Planning: A Blueprint for Success Chapter B2 The Product Market Portfolio

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Strategic Market Planning A Blueprint for
Success Chapter B2The Product Market
Portfolio

• Professor Patrick Mc Namee

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The measure of performance
Cash What are the strategicdeterminants of a
superiorcash position?
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Relative market share

• Relative Market Share of a productor service is
• Its share of its served marketdivided by the
  share of itslargest competitor

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Actual and relative market sharesfor Z and
competing products
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Actual and Relative Market Sharesfor A and
competing products
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A blank matrix
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(No Transcript)
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The product names
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Cash characteristics of the matrix
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Ideal cash movements
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Disastrous cash movements
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Ideal movements of products
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Disastrous movements of products
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A balanced portfolio
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An unbalanced portfolio
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PMP strategies

• BUILD market share
• HOLD market share
• HARVEST
• WITHDRAWAL

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Rolls Royce Aero Engines 1970
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Rolls Royce PMP
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Limitations of PMP

• 1. Just two factors
• 2. If not in top 3 or 4 leave
• 3. Weak link between profits RMS Late
  entrant cost advantage Low share low
  cost supplier Cost not dependent on volume
  Aggressive stupid warfare to be 1 CAM
  Capacity utilisation seasonality Value
  added
• 4. High growth may not be best
• 5. Dogs may not lose
• 6. Innovation may be suppressed
• 7. Too narrow

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Strategic Market Planning A Blueprint for
Success Chapter B2The Product Market
Portfolio

• Professor Patrick Mc Namee