How to do BCG model for the following problem? You are the CEO of a firm...

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General Management

How to do BCG model for the following problem?
You are the CEO of a firm with five distinct SBU/LOBs. It isyour responsibility to decide how to manage them. Develop a modelusing the following intelligence, and then briefly comment on whatyou would do with each SBU/LOB.
The GNP is growing at 8%.
SBU/LOB A. This is your newest product line and it was justintroduced. You anticipate significant competition from the biggerexisting competitors but there is still plenty of room to grow inthe industry, even faster than the GNP . Its contribution to thecorporate portfolio is 5%.
SBU/LOB B. This product is in the decline stage of its lifecycle and your competition have already exited because of lack ofgrowth in the industry. Contribution is 5%.
SBU/LOB C. This is an established product with 25% market share.Your competitors have 50%, 20% and 5% respectively. There is almostno industry growth and contribution is 65%.
SBU/LOB D. You are the market leader in an industry. growing at5%. Its contribution is 15%.
SBU/LOB E. You were the first to introduce this product so nowyou are the biggest guy on the block. Because of the potentiallyunlimited value of this great product this industry is growing at20% and its contribution is 10%.

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4.1 Ratings (841 Votes)

Product A it comes under question mark because since its new product market share is low as of now but growth is significant so the company can think of investing some money into this product line initially See Answer

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