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BCG Growth-Share Matrix

BCG Growth-Share Matrix. Star. Question mark. High. Market growth rate. Low. Cash cow. Dog. High. Low. Relative market share. © 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition

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BCG Growth-Share Matrix

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  1. BCG Growth-Share Matrix Star Question mark High Market growth rate Low Cash cow Dog High Low Relative market share ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  2. Developing Growth Strategies ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  3. Diversification Growth • Concentric diversification strategy • Horizontal diversification strategy • Conglomerate diversification strategy ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  4. Integrative Growth • Backward integration (acquiring a supplier) • Forward integration (acquiring distributor of your product) • Horizontal integration (acquiring a competitor) ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  5. Business Strategy Planning • Business Mission • SWOT Analysis • Strengths, Weaknesses, Opportunities, Threats ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  6. Business Strategy Planning • Internal Environment Analysis • (Strengths and Weaknesses Analysis) • External Environmental Analysis • (Opportunities and Threats Analysis) ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  7. Business Strategy Planning • Goal Formulation • Arrange from most to least important • State quantitatively • Measurable and realistic • Consistent ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  8. Business Strategy Planning • Strategy Formulation • Strategies are the paths to goals • 3 generic types • Overall cost leadership • Differentiation • Focus ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  9. Business Strategy Planning • Strategic Alliances – cooperative agreements between organizations that allow them to benefit from each other’s strengths • What are some strategic alliances in the hospitality and tourism industry? ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  10. Business Strategy Planning • Program formulation • Formulate programs that support the strategy • Implementation • To implement strategy, required resources and employee buy-in are necessary • Feedback and Control • Track results and monitor new developments ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  11. Business Strategy Planning • Unique Challenges of the hotel industry complicate the process of strategic planning • Major chains commonly do not own all properties that they manage • Owners of hotel-resorts often show little interest or knowledge of their property (ego-capital concept) • Professional managers often are not trained in strategic planning • Global strategic alliances may further complicate the planning process ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  12. Best Practices • Howard Schultz brings the European coffee experience to America via Starbucks • Focus on growth, new products, new retail channels to stave off competition ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  13. Best Practices in Strategic Planning • What did they do? • The Inn on Biltmore Estates • Tricon Global Restaurants (Yum Brands) • Jack in the Box • The Las Vegas Hilton • Hyatt Hotels • Boston Greater Convention and Visitors Bureau ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  14. Key Terms • Ansoff product–market expansion grid • Backward integration • Competencies scope • Concentric diversification strategy ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  15. Key Terms • Conglomerate diversification strategy • Corporate mission statement • Forward integration • Geographic scope ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  16. Key Terms • Growth–share matrix • Horizontal diversification strategy • Horizontal integration • Industry scope ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  17. Key Terms • Macroenvironmental forces • Microenvironmental forces • Marketing opportunity • Market-oriented strategic planning ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  18. Key Terms • Market-segment scope • Products and applications • Strategic alliances • Strategic business units (SBUs) • Vertical scope ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

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