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Link between bcg and ansoff

Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › Link between bcg and ansoff

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by Anonymous.
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  • May 27, 2014 at 1:10 pm #171159
    ali anwar
    Member
    • Topics: 4
    • Replies: 4
    • ☆

    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 #171171
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 74
    • ☆☆

    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 products

    Ansoff (growth strategy):
    Diversification – New Product; New Market
    Product development – New Product; Existing Market
    Penetration – Existing Product; Existing Market
    Market development – Existing Product; New Market

    BCG 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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