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Competitive Position Matrix

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Information about Competitive Position Matrix
Education

Published on November 23, 2008

Author: selvaganesh1987

Source: authorstream.com

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Competitive Position/Industry Maturity Matrix : Competitive Position/Industry Maturity Matrix By T. Selvaganesh A D Little : A D Little Competitive position is driven by the sectors or segments in which a Strategic Business Unit operates. The product or service which it markets, and the accesses it has to a range of geographically dispersed markets that are what makes up an organization's competitive position i.e. product and place. Slide 3: Industry maturity is very similar to the Product Life Cycle (PLC) and could almost be renamed an 'industry life cycle.‘ Embryonic Growth Maturity Aging Industry Maturity : Industry Maturity Embryonic – The introduction stage, characterized by rapid market growth, very little competition, new technology, high investment and high prices. Growth – The market continues to strengthen, sales increase, few competitors exist, and company reaps rewards for bringing a new product to market. Slide 6: Mature – The market is stable, there’s a well-established customer base, market share is stable, there are lots of competitors, and energy is put toward differentiating from competitors. Aging – Demand decreases, companies start abandoning the market, the fight for market share among remaining competitors gets too expensive, and companies begin leaving or consolidating until the market’s demise. Competitive Position : Competitive Position Dominant – This is rare and typically short-lived. There’s little, if any, competition, usually a result of bringing a brand-new product to market or having built an extremely strong reputation in the market. Strong – Market share is strong and stable, regardless of what your competitors are doing. Slide 8: Favorable – Here business line enjoys competitive advantages in certain segments of the market. However, there are many rivals of equal strength, and you have to work to maintain your advantage. Slide 9: Tenable – Your position in the overall market is small, and market share is based on a niche, a strong geographic location, or some other product differentiation. Strong competitors are overtaking your market share by building their products and defining clear competitive advantages. Slide 10: Weak – There’s continual loss of market share, and your business line, as it exists, is too small to maintain profitability. Dominant : Dominant Embryonic -Aggressive push for market share- Invest faster than market share dictates Growth - Maintain industry position and market share- Invest to sustain growth Dominant Cont… : Dominant Cont… Mature - Maintain position, grow market share as the industry grows- Reinvest as necessary Aging - Maintain industry position- Reinvest as necessary Strong : Strong Embryonic -Aggressive push for market share- Look for ways to improve competitive advantage- Invest faster than market share dictates Growth -Aggressive push for market share- Look for ways to improve competitive advantage- Invest to increase growth and position Strong Cont.. : Strong Cont.. Mature - Maintain position, grow market share as the industry grows- Reinvest as necessary Aging - Maintain industry position or cut expenditures to maximize profit (harvest)- Minimum reinvestment Favorable : Favorable Embryonic - Moderate to aggressive push for market share- Look for ways to improve competitive advantage- Invest selectively Growth - Look for ways to improve competitive advantage and market share- Selectively invest to improve position Favorable Cont.. : Favorable Cont.. Mature - Develop a niche or other strong differentiating factor and maintain it.- Minimum or selective reinvestment Aging - Cut expenditures to maximize profit (harvest) or plan a phased withdrawal- Minimum investment or look to get out of current investment Tenable : Tenable Embryonic - Look for ways to improve industry position- Invest very selectively Growth - Develop a niche or other strong differentiating factor and maintain it- Invest selectively Tenable Cont.. : Tenable Cont.. Mature - Develop a niche or other strong differentiating factor and maintain it or plan a phased withdrawal.- Selective reinvestment Aging - Phased withdrawal or abandon market- Get out of investments or divest Weak : Weak Embryonic - Decide if potential benefits outweigh costs, otherwise get out of market- Invest or divest Growth - Look for ways to improve share and position, or get out of the market - Invest or divest Weak Cont.. : Weak Cont.. Mature - Look for ways to improve share and position or plan a phased withdrawal- Selectively invest or divest Aging - Abandon market- Divest Thank you : Thank you

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