Question

BCG Case A firm based in Michigan (Detroit), manufactures electronics home entertainment products. The list of products, market shares, growth rates, and turnovers are listed down below. The firm has a creative set of product developers who are experts on assessing new consumer needs. Construct a BCG matrix for assessing the portfolio strategy for the firm. Based on the matrix, what are your recommendations? Hint: To identify high or low market share/growth rates, identify the averages of the numbers below. Anything higher than average falls in the high bracket, and lower than average falls in the low bracket. Plasma screen TV DVD RadioMusic systems 5% 15% 25% 10% 10% 11% 10% 12% 15% 4% 4% 4% 3% 1% 2% Growth 2002 Growth 2003 Growth 2004 Relative Market Shares Turnover Annua 60% 55% 20% 70% 12% 5 Mn 50 Mn 45 Mn 70 Mn 3 Mn

Answer 1

	Plasma Screen	TV	DVD	Radio	Music system
Growth 2002	5%	10%	10%	4%	3%
Growth 2003	15%	10%	12%	4%	1%
Growth 2004	25%	11%	15%	4%	2%
Average Growth	15%	10%	12%	4%	2%
Relative Market Shares	60%	55%	20%	70%	12%
Turnover Annual	5.00	50.00	45.00	70.00	3.00