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BCG Matrix Relative Market Share

The document analyzes four schools within a university based on their market share, growth rate, and position in the BCG matrix. 1) The School of Business has the highest market share and a medium growth rate, placing it in the Stars category where it should receive substantial investment. 2) The School of Education has a high market share but low growth rate, placing it in the Cash Cows category where it needs to maintain its position but consider product development or diversification. 3) The School of Science and Humanities has a low market share and low growth rate, placing it in the Dogs category where it should be liquidated, divested or trimmed through retrenchment. 4

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Jan Gelera
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204 views

BCG Matrix Relative Market Share

The document analyzes four schools within a university based on their market share, growth rate, and position in the BCG matrix. 1) The School of Business has the highest market share and a medium growth rate, placing it in the Stars category where it should receive substantial investment. 2) The School of Education has a high market share but low growth rate, placing it in the Cash Cows category where it needs to maintain its position but consider product development or diversification. 3) The School of Science and Humanities has a low market share and low growth rate, placing it in the Dogs category where it should be liquidated, divested or trimmed through retrenchment. 4

Uploaded by

Jan Gelera
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Given the following data, illustrate BCG Matrix and address final decision making:

% of students Market Share Relative Market


  % Growth Rate
enrolled Position Share
A.     School of Business 40 1 Medium 1.0
B.     School of Education 30 2 Low 0.75
C.     School of Science & Humanities 20 3 Low 0.5
D.    School of Arts 10 4 Medium 0.25

BCG Matrix

Relative Market Share

Strategic Decision:

 School of Business – This represent the universities’ best long-run opportunities for
growth and profitability. This school has a high relative market share and a high industry
growth rate thus should receive substantial investment to maintain or strengthen their
dominant positions. Forward, backward, and horizontal integration; market penetration;
market development; and product development are appropriate strategies for this
division to consider.
 School of Education - This school in the university has a high relative market share
position but compete in a low-growth industry (school of education). This division
should be managed to maintain their strong position for as long as possible. Product
development or diversification may be attractive strategies for the school. However, as
the division becomes weak, retrenchment or divestiture can become more appropriate.

 School of Science and Humanities – This school has low relative market share position
and compete in a slow- or no-market-growth industry. Because of the weak internal and
external position, the School of Science and Humanities can be liquidated, divested, or
trimmed down through retrenchment. In here, retrenchment can be the best strategy to
pursue because the school may bounce back, after strenuous asset and cost reduction,
to become viable, profitable divisions.

 School of arts – This division in the university has a low relative market share position,
yet can compete in a high-growth industry. Generally the school has cash needs that are
high while the cash generation is low. In here, the university must decide whether to
strengthen the school by pursuing an intensive strategy (market penetration, market
development, or product development) or to sell them.

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