Market Interpretation:  Strategy – Mission, Situation Analysis, Growth/Share Matrix
- Articles, Blog

Market Interpretation: Strategy – Mission, Situation Analysis, Growth/Share Matrix

let’s continue with our discussion of the
competency market interpretation. specifically we’re focusing here on
marketing strategy. part of marketing strategy is to understand your organization’s
mission because your marketing decisions need to
support your organizational mission. Entrepreneur Magazine give some
definitions or descriptions of your organizational
mission. it says it’s a few succinct sentences that capture the essence of your business goals and the
philosophies underlying them. a mission statement signals what your business is all about
to your customers employers suppliers and community. the organizational mission reflects the range and nature your
products, your pricing, your quality, service, marketplace potential, growth potential, use of
technology and your relationship with key stakeholders.
seems like a lot to put in a few sentences. mission statement
help clarify what business you are in, your goals and objectives. let’s look at a couple examples. Mead Johnson nutrition says ” to nourish
the world’s children for the best start.”
FedEx’s it a little bit longer — still a few sentences. these say they will provide superior
financial returns by providing high value added logistics, transportation, and related
information services through focused operating companies.
customer requirements will be met the highest quality manner appropriate each market segments served. Fed Ex corporation
will strive to develop mutually rewarding relationships these key constituency. they mention safety and the highest ethical and professional
standards. the foundation for all of your marketing
strategy should be your organizational mission.
one thing you’ll want to do early on is to do situation analysis. the American Marketing
Association defines situation analysis as a systematic collection and study of past and data to identify trends, forces and conditions with the potential to
influence the performance of the business and choice of appropriate strategy. it’s the foundation of strategic planning. the situation analysis includes an
examination of internal factors — we would call those strength and weaknesses — and external factors — opportunities and threats.
so in a way, a situation analysis look at marketing environment and the inside of your business to develop strengths and
weaknesses when it looks at the inside your business and opportunities
and threats when it looks at the marketing environment. let’s look at a
college for example. internally it would look at its strength
and its weaknesses. so one of its strengths might be smaller classes. while its weakness might be in a location or
a town where students aren’t interested in living. when we looked at the
external environment an opportunity might be a nearby
competitive college closing or threat might be concerns in the
social environment about the growing amount of student
loan debt. so strengths and weaknesses are
things that you can work on inside your organization. and
opportunities present either opportunities or threats to your future sales. id’ like to discuss the Boston Consulting Group grow share matrix. here what we’re going to
do is look at amatrix where on one axis we market share and we look at market share being either high or low. on the other axis, we look at the potential growth of that
market — the market potential — and we look at
whether growth is high or low. now this is particularly
helpful if your business is going to be selling
more than one product. it’s still helpful obviously if you only
sell one. but if you sell multiple products and you have to decide where to allocate
your resources, this helps you to look at what product
lines within your company should get the greatest resources. what the Boston Consulting Group did was
to come up with four quadrants here. if you are manufacturing a product that
has a high market share and high growth potential you have what’s called a star. this is your shining star. you’ve got high
market share in something that’s growing. it just doesn’t get much better than this. so if
you were to look at something like the iPad and the tablet computer market — Apple has a high share and a high-growth market. down here in
the opposite quadrant, if you have a low market
share in something that has a low growth rate, that would be your dog and there’s not
much use in investing much money in that product line or product item.
not only do you not have a huge market share there but it is not expected to have much growth. look at something where you have a high
market share but there’s relatively low market grow. a company for example like Kodak with
its traditional photo printing boothes at stores would be considered a cash cow. there’s not a lot of growth so you don’t
want to invest a lot, but you don’t want to just not to have any
investment at all because as long as there’s still a
demand, you have high share. so you can continue
to “milk this cow” as long as the market exists. a question mark is an area that you have
a low market share in but there’s high mark growth. what you want to do here — if you
can invest some resources to move this over to a higher market
share then you can move this question mark into a
star. the problem here is you have
competitors who have a high market share. they have
some stars in this area and so you have to ask yourself can you get some of this star’s market share. so the Boston Consulting
Group growth share matrix simply allows you
to figure out how to manage resources in your
portfolio of products.

About Ralph Robinson

Read All Posts By Ralph Robinson

1 thought on “Market Interpretation: Strategy – Mission, Situation Analysis, Growth/Share Matrix

Leave a Reply

Your email address will not be published. Required fields are marked *