1 building a matrix ibl answers. day 2 2 ibl 1. what is ibl’s relative share for product 1? 1.5:1 ...
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1
BUILDING A BUILDING A MATRIXMATRIX
IBL ANSWERSIBL ANSWERS
2
DAY 2
IBLIBL1. What is IBL’s relative share for product 1?Table 5.1 (1,500 divided by
1,000) = 1.5:11.5:1
3
DAY 2
2. What will IBL’S relative market share be for product 1 in year 3?Chart 5.4 year 3 sales forecast 1,815Chart 5.5 company b, year 3 sales
forecast 1,562
IBLIBL
4
DAY 2
2. What will IBL’S relative market share be for product 1 in year 3?
(1815 divided by 1562) =
1.16:11.16:1
IBLIBL
5
DAY 2
3. What is annual growth of the market for product 1?Table 5.3 20%, 22%, and 25%
IBLIBL
6
DAY 2
4. What will be the total market volume for product 1 in year 3?Table 5.1 sales as 1,500. Table 5.2
absolute market share of 15%. Market size in year
1 = 1500 x 100 = 10,000 1 15
IBLIBL
7
DAY 2
4. What will be the total market volume for product 1 in year 3?Thus market size for year 3 is found
from the % figures in Table 5.3.
10,000 x 22% x 25% = 15,250
IBLIBL
8
DAY 2
5. What is absolute market share of IBL’S product 1 in year 3? Table 5.3, year 3 (1815) divide by
answer to question 4 (15,250) =
11.9
IBLIBL
9
DAY 2
IBLIBL
6. Is the market growth in current year, high or low, relative to industry average of 10%?HIGH at 20, 22, 25%
10
DAY 2
7. Table 5.1RMSRMS RMGRMG
1.5:1 20%
2:1 9%
0.9:1 12%
0.6:10.6:1 10%10%
0.5:1 5%
0.2:10.2:1 3% 3%
0.1:1 22%
11
DAY 2
20%
10%
0%
.250.512410
1
2
34
56
7
IBLIBL
12
DAY 2
8. Table 5.1 contribution VOLUMEVOLUME SIZESIZE
1,500 1.5
1,300 1.3
1,000 1
1,0001,000 11
900 .9
800 .8
500500 .5.5
13
DAY 2
20%
10%
0%
.250.5124
1
23
4
5 6
7
IBLIBL
14
DAY 2
9. DO YOU THINK PORTFOLIO IS WELL BALANCED?
WHY? WHAT DO YOU RECOMMEND?
IBLIBL
15
DAY 2
20%
10%
0%
.250.512410
6
1
RMS RMS 1:16.11:16.1
MG MG 25%25%
1,8151,8151
342
56
16
DAY 2
12. Are signs ahead good, comparing IBLS product 1 with current situation?
IBLIBL
17
DAY 2
20%
10%
0%
.250.512410
7
1
1
342
5 6
18
DAY 2
13. What is happening to main product?
c. Losing market share in a growing market
IBLIBL
19
DAY 2
20%
10%
0%
.250.512410
7
1
1
342
5 6
20
DAY 2
14. What policy should IBL pursue for product 1.
D. Hold price increase promotion
IBLIBL
21
DAY 2
20%
10%
0%
.250.512410
7
1
1
342
5 6
22
DAY 2
15. What other products would you invest in?
B. 3 and 7
IBLIBL
23
DAY 2
20%
10%
0%
.250.512410
1
2
34
56
7
73
1
24
DAY 2
16. Which product should you maintain current position?
2, 3, 4, 5, 6 or 7
IBLIBL
25
DAY 2
20%
10%
0%
.250.512410
1
34
56
7
73
1
2
26
DAY 2
17. Which combinations should be managed for cash options
c. 4, 5, 6
IBLIBL
27
DAY 2
20%
10%
0%
.250.512410
1
2
34
56
7
4
5 6
1
28
DAY 2
IBLIBL
TRY TO USE ONLY TEN PRODUCTSOR USE 20% that account for
majority of turnover
29
DAY 2
PRODUCT STRATEGIESPRODUCT STRATEGIES
1. TARGET FOR DEVELOPMENT
2. DEFEND FROM COMPETITION
30
DAY 2
PRODUCT STRATEGIESPRODUCT STRATEGIES
3. MAINTAIN WITH MINIMUM RESOURCES?
4. WITHDRAW?
31
DAY 2
GROWTH STRATEGIESGROWTH STRATEGIES
CURRENT
NEW MARKETS
PRESENT MARKETS
NEW/FUTURENEW/FUTURE
VERTICAL INTEGRATION
VERTICAL INTEGRATION
GROWTH PROD DEVELOP
MARKET DEVELOP
DIVERSIFY
32
DAY 2
MATRIX DESIGNMATRIX DESIGN
TARGET KEY SUCCESS FACTORS
MUST BE MEASURABLE
FUTURE FOCUS
33
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
MA
RK
ET
GR
OW
TH
%
P.A
.MARKET SHARE %
3
1
2
0
10
20
20 40
34
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
MA
RK
ET
A
TT
RA
CT
IVE
NE
SS
PRODUCT STRENGTHS
31 2
LOW MED HIGH
LO
WM
ED
HIG
H
35
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
PR
ICE
C
OM
PE
TIT
IVE
NE
SS
QUALITY COMPETITIVENESS
3 1
2
LOW MED HIGH
LO
WM
ED
HIG
H
36
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
INV
ES
TM
EN
T S
AL
ES
P
OT
EN
TIA
LSALES POTENTIAL
3
1
2
LOW MED HIGH
LO
WM
ED
HIG
H
37
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
MA
RK
ET
ING
C
AP
AB
ILIT
Y
DEVELOPMENT CAPABILITY
3 1
2
LOW MED HIGH
LO
WM
ED
HIG
H
38
DAY 2
WHAT IS THE WHAT IS THE STRATEGY?STRATEGY?
RE
TU
RN
ON
IN
VE
ST
ME
NT
LEVEL OF RISK
3
1
2
LOW MED HIGH
LO
WM
ED
HIG
H