Question

Assume you are conducting a portfolio analysis on your company, which currently has 4 SBU’s: (1) cellphones, (2) tablets, (3) laptops and (4) DVD players. Assume that both the cellphone and tablet market is growing and that the market for laptops and DVD players is saturated.

The market share your company has for each product is as follows:
Cellphone: 10% market share, Market Growing
Tablet:   75% market share, Market Growing
Laptop: 80% market share, Market Saturated
DVD players: 8% market share, Market Saturated

a.) Classify each SBU according to the BCG matrix. (If you want, you may draw a diagram).

b.) Based on your classification, for which SBU’s do you recommend investment? Where should this investment come from? Explain your answers.

c.) Give 2 suggestions on how the company could grow (increase sales) in the future.

Answer 1

BCG matrix
Stars	High growth, high market share	Tablets
cash cow	low growth, high market share	Laptop
Dogs	low growth, low market share	cellphone
Question Marks	high growth, low market share	DVD players
I would recommend to invest in Tablet market as it is growing and having highest market share which means more investment in tablet market would provide more returns in comparison to other segments. Investment will come from the public from public offer or from any other strategic partner
Sales can be grown by (1) introducing the new features in the product (2) by targeting more segments for the use of tablets