Today we are going to talk about the aerial matrix that is tensing a product portfolio or a strategic business unit. What are the model look like and how it works? It is for the board that is newly formed and aging whether it is strong or the weak business either it is a younger, a dominant. Anyone can use it strategies. Yes, business life cycle phases.
There are four phases: embryonic growth maturity, anti-aging business you need is in the youthful stage means it is an embryonic stage did need a strong financial support, because profit is not releasing yet. Coming to the second point, growth here, your business company takes off and showing a rapid growth expansion either it is from the front end or the back. Can you have? You are only concentrating on the need of production because you have to satisfy for the customer needs at that time in the growth figures coming to maturity and the aging stage maturity.
In this stage, you are concentrate on the brand positioning because satis, if occation is over now it time to maximize the profits. It is the time that you should concentrate on the brand value and brand positioning coming to the point aging here. Your sales, faraway stages of the profit harvested and computation may leave the market or they are trying to shift to the new trend. So it time to modify or time to change rates of the companies coming to next, we are going to talk about the strength of the company strategic business unit.
Here also, there are five phases: one is dominant, strong, favorable, tenable and weak in the dominant phase. You are a market leader and you are the monopolistic coming to the second. Strong strong phase is what having a strong force with the small number of companies, but there should be a competitor, but ok, you can make money in those competitor. Also, yes, you will be in the profit. This phase is called as a strong phase coming to.
Third, there is a favorable. What is favorable, it is a very fragmented market. There is no dominant player, there is no rivals, there is no clear header. This is what we called a favorable phase next enable 10 a bar is what company serves in each with its limited geographical area or maybe with a special product coming to next? It is a weak, weak phase. What is the weak phase? Poor financial status and very small position: this is what we called a very weak phase of a company success subdivision strategies.
We are going to discuss the six strategies for the week and staging business. These six shelter days will help you to better life cycle of the companies. One is the market Chaterjee that is moving into your new geography or developing the different segments building a new product. It will benefit. You, second, is the products energy launching the new product, finding ways of differentiating the product positioning the product against the need of a specific segment.
It will also be PQ, that is the profit product strategy management and the system strategies here. Finding the process that give you a competitive advantage, such as the production at low cost betterment in the customer service for these technology strategies, that is, investing in the research and development, to ensure that product portfolio is full of the new products with a high market. Appeal placement strategies, building a customer loyalty to rebuild the business and obtain the greater share of the valid or, at the higher prices, operational strategies, improving the logistic on gaining a competitive advantage through the foster deliveries and our more efficient operation.
Altium Arun action, the model in action, a company should apply area in the three steps. One is determine the position of the business in its life cycle where the company life cycle exists means either. It is exist in the embryonic stage or maturity stage or aging stage. So you should get a clear by following these four questions. One is how big is the market? How many companies supply the market? How big are those companies? How old are those companies? These are the four questions you have to clear and after this clearance, you should ask a question that a large number of small and the young company or businesses indicate as an embryonic stage point number to a small number of large companies suggests maturity and old age.
You should get clear of these two points. Step number two determine the competative position of the business, so this should be easier than determining the life stage. A company in the strong competitive position will have a distinctive product offer or a command premium prices. He enjoy a significant market share, good growth and a high profitability. These are the things which you can evaluate very easily than evaluating the stages of life cycle plot.
The position of the business on the mock matrix means it is, might find that it’s standing in two or three different positions. That is either it is standing in embryonic stage already standing on adult phase. Also, so you can’t decide in these questions. New are a growing company with a strong or a dominant position. If this is the case, then it am to defend this position is maturity or ageing company with a strong dominant position, it aim to defend the position and grow with the market or consider harvesting the profits.
Third Point: new are growing company with a weak position in the market, so this type of companies find their niche in which you can survive or if the business is not profitable, consider withdrawing from the market shear or aging company with a weak position in the market. It isn’t possible to improve the competitive position so consider withdrawing from the market. It is well and good for the company, it is the loss rate so analyzing.
These are the four points, and these are the steps that you have to follow before applying aerial into the matrix of the company yeah. Thank you very much for your support. Let’s take share and subscribe forget for more upcoming articles.
Starting a business is not easy! Think about who will be working on your digital image. Hiring a good webmaster will help!