Question

Penn Racquet Sports Courts Canine Customers Suppose your industry were in free fall What would you do to find more customers? Penn Racquet Sports faced this situation in the late 90s when consumer interest in recreational tennis began to decline. Penn, the nation's No. 1 maker of tennis balls at the time, suffered flat sales and a decade long lull in recreational tennis. Penn needed to take action to save its business. In evaluating the market place. Penn looked for other markets for its product because Penn was convinced that tennis was not making a comeback any time soon. While there were still hard-core players, tennis was losing its weekend players. Recreational play was down 20% so Penn knew it needed to make a change. Question 1: (a). At this time, was tennis a high or low growth industry. Why? (b). Did Penn have a high or low share of the tennis ball market? Why? (C). Which business type (Question Mark, Star, Cash Cow, or Dog) best described Penn at this time? Explain the type you selected based on your answers to (a) and (b).

Answer 1

* Osing BCG matrix, a company classihes its different businesses on two dimensional growth Share matrix. Vertical axis represents Market growth rate , Horizontal axis represents relative marieet share. *Using the matrix, Organisation can Identity four different types of products 1. Stars Products that grow rapidly 2. Cash cows → lene low growth, high market share products. 3. Question Marks → Low market share products in high growth markets. 4. Dogs - products with low growth and Share * BCG Matrix depfets quadrants as Market Cho Rate Relative Market share High Low Stars Question mares! Cashcows Dogs ] High Low Growth * 1a) you. At this time, tennis is a low growth industry as it is said that the tennis industry were in free fall. (b) Denn has high Share of tennis ball market as he is nations No 1 maker of tennis ball at the time . Based on above discussion through BCG matriz. Penn's business can be described as cash cows