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MNM3709 - study unit 3 - Marketing analysis summary continue
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Discuss "problem children or question marks" in the growth-share matrix
Discuss "problem children or question marks" in the growth-share matrix
- high market growth
- low relative market share
- large negative cash flow
- products require more cash than they are able to generate themselves
Discuss "dogs" in the growth-share market
Discuss "dogs" in the growth-share market
- low market growth
- low relative market share
- small positive or negative cash flow
- poor competitive position condemns them to poor profits
- require more management time than they are worth
Explain the market attractiveness and the enterprise strength variables of the market attractiveness-enterprise strength model.
Explain the market attractiveness and the enterprise strength variables of the market attractiveness...
This model consists of a market grid and is based on the value of return. The market grid is
bound by two variables: market attractiveness on the horizontal axis and organizational strength
on the vertical axis.
Market attractiveness includes a variety of variables. The market attractiveness position is
therefore a compound index indicating the relative importance of variables such as:
-Market segment
-Market growth
-Profit margin
-Competitors
-Economic conditions
-Technological changes
-Socio-cultural changes
-Action by authorities
Enterprise strength shows how strong the organization is in comparison to its competitors.
The following variables are evaluated and combined in an index:
-Market share
-Profitability
-Technology
-Product quality
-Resources
-Knowledge of the market
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