BUILDING A MATRIX IBL ANSWERS

1
BUILDING A MATRIXIBL ANSWERS
2
IBL

• 1. What is IBLs relative share for product 1?
• Table 5.1 (1,500 divided by 1,000) 1.51

3
IBL

• 2. What will IBLS relative market share be for
  product 1 in year 3?
• Chart 5.4 year 3 sales forecast 1,815
• Chart 5.5 company b, year 3 sales forecast
  1,562

4
IBL

• 2. What will IBLS relative market share be for
  product 1 in year 3?
• (1815 divided by 1562) 1.161

5
IBL

• 3. What is annual growth of the market for
  product 1?
• Table 5.3 20, 22, and 25

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IBL

• 4. What will be the total market volume for
  product 1 in year 3?
• Table 5.1 sales as 1,500. Table 5.2 absolute
  market share of 15. Market size in year
• 1 1500 x 100 10,000
• 1 15

7
IBL

• 4. What will be the total market volume for
  product 1 in year 3?
• Thus market size for year 3 is found from the
  figures in Table 5.3. 10,000 x 22 x 25 15,250

8
IBL

• 5. What is absolute market share of IBLS
  product 1 in year 3?
• Table 5.3, year 3 (1815) divide by answer to
  question 4 (15,250) 11.9

9
IBL

• 6. Is the market growth in current year, high or
  low, relative to industry average of 10?
• HIGH at 20, 22, 25

10

• 7. Table 5.1
• RMS RMG
• 1.51 20
• 21 9
• 0.91 12
• 0.61 10
• 0.51 5
• 0.21 3
• 0.11 22

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IBL
.25
0.5
1
10
2
4
7
20
1
3
10
4
2
5
6
0
12

• 8. Table 5.1 contribution
• VOLUME SIZE
• 1,500 1.5
• 1,300 1.3
• 1,000 1
• 1,000 1
• 900 .9
• 800 .8
• 500 .5

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IBL
.25
0.5
1
2
4
20
1
7
3
4
10
2
5
6
0
14
IBL

• 9. DO YOU THINK PORTFOLIO IS WELL BALANCED?
• WHY? WHAT DO YOU RECOMMEND?

15
RMS 116.1 MG 25 1,815
1
.25
0.5
1
10
2
4
6
1
20
3
4
10
2
5
6
0
16
IBL

• 12. Are signs ahead good, comparing IBLS product
  1 with current situation?

17
1
.25
0.5
1
10
2
4
7
1
20
3
4
10
2
5
6
0
18
IBL

• 13. What is happening to main product?
• c. Losing market share in a growing market

19
1
.25
0.5
1
10
2
4
7
1
20
3
4
10
2
5
6
0
20
IBL

• 14. What policy should IBL pursue for product 1.
• D. Hold price increase promotion

21
1
.25
0.5
1
10
2
4
7
1
20
3
4
10
2
5
6
0
22
IBL

• 15. What other products would you invest in?
• B. 3 and 7

23
1
.25
0.5
1
10
2
4
1
7
7
20
3
3
10
4
2
5
6
0
24
IBL

• 16. Which product should you maintain current
  position?
• 2, 3, 4, 5, 6 or 7

25
1
.25
0.5
1
10
2
4
1
7
7
20
3
3
10
4
2
5
6
0
26
IBL

• 17. Which combinations should be managed for
  cash options
• c. 4, 5, 6

27
1
.25
0.5
1
10
2
4
1
7
20
4
3
10
4
2
5
5
6
6
0
28
IBL

• TRY TO USE ONLY TEN PRODUCTS
• OR USE 20 that account for majority of turnover

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PRODUCT STRATEGIES

• 1. TARGET FOR DEVELOPMENT
• 2. DEFEND FROM COMPETITION

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PRODUCT STRATEGIES

• 3. MAINTAIN WITH MINIMUM RESOURCES?
• 4. WITHDRAW?

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GROWTH STRATEGIES
PRESENT MARKETS
PROD DEVELOP
GROWTH
VERTICAL INTEGRATION
MARKET DEVELOP
NEW MARKETS
DIVERSIFY
CURRENT
NEW/FUTURE
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MATRIX DESIGN

• TARGET KEY SUCCESS FACTORS
• MUST BE MEASURABLE
• FUTURE FOCUS

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WHAT IS THE STRATEGY?
MARKET SHARE
2
20
MARKET GROWTH P.A.
1
10
3
0
20
40
34
WHAT IS THE STRATEGY?
PRODUCT STRENGTHS
HIGH
3
2
1
MARKET ATTRACTIVENESS
MED
LOW
LOW
MED
HIGH
35
WHAT IS THE STRATEGY?
QUALITY COMPETITIVENESS
HIGH
2
PRICE COMPETITIVENESS
1
3
MED
LOW
LOW
MED
HIGH
36
WHAT IS THE STRATEGY?
SALES POTENTIAL
HIGH
3
2
INVESTMENT SALES POTENTIAL
1
MED
LOW
LOW
MED
HIGH
37
WHAT IS THE STRATEGY?
DEVELOPMENT CAPABILITY
HIGH
2
MARKETING CAPABILITY
MED
3
1
LOW
LOW
MED
HIGH
38
WHAT IS THE STRATEGY?
LEVEL OF RISK
3
HIGH
RETURN ON INVESTMENT
1
MED
2
LOW
LOW
MED
HIGH