ITC Product Mix, BCG Matrix

turnover, which is made possible by low prices and limited product selection. This business model is appealing for them and has many benefits. Firstly, by setting up the business approach to rapidly

Because of this, there is a case that companies like Google, look forward to making sure that they penetrate the market in order to produce better outcomes, which also leads to a fast growth for the organization.

1. What is their business strategy to grow profitably and compete over the long term?

With increasing budget Allstar has, high market share in cold category and leadership in this market are promised.

Profits are strong, but the company has to be willing to diversify. Also during this stage is where competition decreases and usually only the strong survives. Take for example the number of phone carriers there were in the 90’s versus how many today.

For example In 2004 Branson was set to enter the music industry once again by diversifying into the online music industry through an online music store service just like Apple. He also released his own mp3 called the ‘Pulse’ that was to rival Apple’s Ipod. Unfortunately he closed both products later that year due to the fact that Apple kept releasing new products that made the ‘Pulse’ outdated with Apple’s high brand awareness, Virgin found it difficult to rival a large market leader therefore caused them to retrench and withdraw their product. This shows that although diversifications seem the best strategy for profitable growth, it does pose many risks especially when entering new unfamiliar markets.

Constantly growing firm with increasing revenue (15.5% in 2005), net profit, total assets and high returns on equity (5.1% in 2005)

Being able to acquire a new market may bring those new customers to their current market.

industry has been facing challenges. The industry is in a decline. This is because people may be

Individual growth which can be investing in people, learning opportunities through training programs and career opportunities through new jobs and promotion.

Here, we see famous athletes with their exceptional abilities that are obviously making the owners richer, communities’ job and income outlook better. With so many existing teams and

Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.

Entrants erode the market and rarely grow it enough to the incumbent’s advantage. New entrants have an impact on the industry business but at a moderate level. This is mainly because new firms will find it difficult to compete against the incumbents’ strong brand, like Starbucks and McDonalds, and because the market is saturated. However, the costs of entry are relatively low. Most of the raw materials are cheap and the distribution chain is not complicated. This makes it easy for new companies to enter the market. Also, established companies might leverage their brands as they enter the industry to compete against the incumbents.

It may be that you will only be competing directly against some of these because you will be targeting a particular segment of the market or offering services which are hard to find elsewhere”( Market Research- Estimating Demand, 2012).

Stars are units with a high market share in a fast-growing industry (High Market Share / High Market Growth). The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, if they have been able to maintain their category leadership stars become cash cows, else they become dogs due to low relative market share.