MKC EXAM STUDY
SIMULATION QUESTIONS AND
✔ACCURATE SOLUTIONS
3/5 of the market shares for the different segments increase from Q8 to Q9. We can also see that
majority of the bikes increased significantly in sales from Q8 to Q9, including the addition of the new
brand the Downhill Demon. Therefore, it is likely that this business is towards the end of the growth
stage and nearing the mature phase.
Bayside Bikes current position after Q8 is a market challenger. In quarter 8 they hold a market share of
24% which is second to the market leader at 25%. Their focus is to create differentiation and exploit
opportunities to fight for market share. Bayside Bikes are the segment leaders in Work and recreation at
32%. It is at the end of its growing phase and nearing the mature phase
1. What competitive strategies do you suggest for the focal company to maintain or increase its market
share? ✔ans As identified in the previous question, Bayside Bikes is in the end of the growth stage and
nearing the mature phase. For the growth the phase, the main goal is to continue to gain market share
and to reinforce the market position. Some strategies for Bayside Bikes will be to:
a. Differentiate products on attributes: continue to focus on research and development on the current
products
b. Expand more into the mountain area and work area, create new products
c. Focus heavily on advertising
d. Invest to grow to maintain market share
The main goal for bayside bikes to gain market share and reinforce its market position is to:
MARKET EXPANSION STRATEGY
• Bayside bikes have opened store in all regions whilst they are still yet to open stores in Nantes.
• Targeting new and underdeveloped geographic markets or new customer segments can help them to
extend volume growth
INCREASED PENETRATION STRATEGY
, • Differentiate product attributes, continue investments in R&D to improve bike quality
• Expand more in successful segments - work and recreation and create new products. Change priority
segment from speed to recreation and focus advertising into this
• Improve ad quality and invest more to grow maintain market share.
1. What does a GE matrix (9-cell industry attractiveness / business strength matrix) displaying the focal
company's business units look like? ✔ans o The different segments for Bayside Bikes were analysed
using the GE matrix to analyse their business strength.
o The industry attractiveness for each segment was then analysed.
1. What strategic insights do you draw from the GE matrix? ✔ans Work, recreation and speed are all
sitting in the best positions, with industry attractiveness
a. Work and recreation: both market leaders in Q9. Protect position, invest to grow at maximum
digestible rate, concentrate on maintaining strength. Heavily invest in research and development.
b. Speed: build selectively, invest heavily in most attractive segments, build up ability to counter
competition, emphasise profitability by raising productivity
c. Youth and mountain: weakest segments, protect existing program, concentrate investments in
segments where profitability is good, and risks are relatively low
o Build selectively for the youth segment: seek ways to overcome limitations
o Build selectively for both work and recreation: focus on the most attractive segments, build up the
ability to counter the competition
1. Perform a SWOT analysis for the focal company ✔ans Strengths
o Largest market share for work and recreation segments
o Highest cumulative investment in firms' future
o High price judgements in the industry
o Decent amount of local media inserts
o High total demand
o Highest rating brand in work
o High ratings in all of the segments
o Largest store sale force
SIMULATION QUESTIONS AND
✔ACCURATE SOLUTIONS
3/5 of the market shares for the different segments increase from Q8 to Q9. We can also see that
majority of the bikes increased significantly in sales from Q8 to Q9, including the addition of the new
brand the Downhill Demon. Therefore, it is likely that this business is towards the end of the growth
stage and nearing the mature phase.
Bayside Bikes current position after Q8 is a market challenger. In quarter 8 they hold a market share of
24% which is second to the market leader at 25%. Their focus is to create differentiation and exploit
opportunities to fight for market share. Bayside Bikes are the segment leaders in Work and recreation at
32%. It is at the end of its growing phase and nearing the mature phase
1. What competitive strategies do you suggest for the focal company to maintain or increase its market
share? ✔ans As identified in the previous question, Bayside Bikes is in the end of the growth stage and
nearing the mature phase. For the growth the phase, the main goal is to continue to gain market share
and to reinforce the market position. Some strategies for Bayside Bikes will be to:
a. Differentiate products on attributes: continue to focus on research and development on the current
products
b. Expand more into the mountain area and work area, create new products
c. Focus heavily on advertising
d. Invest to grow to maintain market share
The main goal for bayside bikes to gain market share and reinforce its market position is to:
MARKET EXPANSION STRATEGY
• Bayside bikes have opened store in all regions whilst they are still yet to open stores in Nantes.
• Targeting new and underdeveloped geographic markets or new customer segments can help them to
extend volume growth
INCREASED PENETRATION STRATEGY
, • Differentiate product attributes, continue investments in R&D to improve bike quality
• Expand more in successful segments - work and recreation and create new products. Change priority
segment from speed to recreation and focus advertising into this
• Improve ad quality and invest more to grow maintain market share.
1. What does a GE matrix (9-cell industry attractiveness / business strength matrix) displaying the focal
company's business units look like? ✔ans o The different segments for Bayside Bikes were analysed
using the GE matrix to analyse their business strength.
o The industry attractiveness for each segment was then analysed.
1. What strategic insights do you draw from the GE matrix? ✔ans Work, recreation and speed are all
sitting in the best positions, with industry attractiveness
a. Work and recreation: both market leaders in Q9. Protect position, invest to grow at maximum
digestible rate, concentrate on maintaining strength. Heavily invest in research and development.
b. Speed: build selectively, invest heavily in most attractive segments, build up ability to counter
competition, emphasise profitability by raising productivity
c. Youth and mountain: weakest segments, protect existing program, concentrate investments in
segments where profitability is good, and risks are relatively low
o Build selectively for the youth segment: seek ways to overcome limitations
o Build selectively for both work and recreation: focus on the most attractive segments, build up the
ability to counter the competition
1. Perform a SWOT analysis for the focal company ✔ans Strengths
o Largest market share for work and recreation segments
o Highest cumulative investment in firms' future
o High price judgements in the industry
o Decent amount of local media inserts
o High total demand
o Highest rating brand in work
o High ratings in all of the segments
o Largest store sale force
