Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › Link between bcg and ansoff
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- May 27, 2014 at 1:10 pm #171159
Respected Sir/Madam,
Kindly help me understand the relationship between BCG matrix and Ansoff matrix. Eg Whether a Star(BCG) involves penetration strategy(Ansoff)? Please provide explanation for others aswell.Thankyou
May 27, 2014 at 2:11 pm #171171AnonymousInactive- Topics: 0
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Hi,
Here is my version of combining the two but not sure if I my approach correct:BCG (position of products within portfolio):
Star – High Growth; High Share; – new product which gain market recognition
Cash Cow – Low Growth; High Share; – fallen star company enjoy low costs and high mg
Dog – Low Growth; Low Share; – products at the end of their life
Problem Child – High Growth; Low Share; – New productsAnsoff (growth strategy):
Diversification – New Product; New Market
Product development – New Product; Existing Market
Penetration – Existing Product; Existing Market
Market development – Existing Product; New MarketBCG and Ansoff together:
Diversification – product is not in your portfolio and market is different to yours;
Product development – problem child
Penetration – reposition the product (possibly cash cow or dog)
Mk development – could be all due to different market preferences;There is no need to penetrate with Stars as market is already growing alongside with share. You apply Ansoff when you are looking for expansion/growing strategies.
Regards,
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