AWL (GE/McKinsey approach) |
Describe the business portfolio and the options available to AWL.
The business portfolio of AWL’s 1998 fiscal year consists of three SBUs, namely three new marketing textbooks, including Advertising and Sales Promotion Strategy, Analysis for Strategic Marketing and Marketing Engineering. We can also see these three textbooks in the GE Portfolio Matrix as shown in Graph 1 and Graph 2.
AWL should have clear understanding of these three new textbooks in order to prioritize the promotional resources for them. For example, the book named Marketing Engineering is a bit different from the other two, since it doesn’t currently have a large natural market but might ultimately be a big winner if it is…show more content…
As can be seen in Graph 1, from the traditional perspective, Analysis for Strategic Marketing written by Rao and Steckel is plotted the highest with respect to the Horizontal Axis “Business Strength” and the Vertical Axis “Industry Attractiveness”. On the contrary, if AWL wants to build its “leading-edge” image, it is suggested to promote Marketing Engineering written by Lilien and Rangaswamy with more resources and effort. As can be seen in Graph 2, from the leading-edge perspective, Marketing Engineering written by Lilien and Rangaswamy is plotted the highest with respect to the Horizontal Axis “Business Strength” and the Vertical Axis “Industry Attractiveness”.
In a word, AWL’s strategic objectives and its promotional plans depend on which weight of “traditional” and “leading-edge” they want to focus.
3. What should Mark do?
From the history of AWL we can easily tell that AWL has already established its traditional image in the publishing industry and also in customer’s mind. Therefore, according the GE Matrix in Graph 2 and from my perspective, Mark is recommended to promote Marketing Engineering written by Lilien and Rangaswamy in order to exploit the leading-edge area and to gain long-term success.
The detailed interpretation is as follows:
The three cells in the upper right are those in which AWL has a strong position and should