Which type of Case questions can I use Growth Share Matrix in ?

growth strategy
Recent activity on Apr 09, 2018
2 Answers
2.7 k Views
Anonymous A asked on Apr 09, 2018

Can some one share some examples ?

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Retired
Expert
replied on Apr 09, 2018
Former BCG interviewer

Portfolio strategy cases. For example: a consumer goods company operates in 5 markets: oral care, cleaning supplies, laundry detergents and snacks and they want to know in which segments they should double down with investments/M&A activity vs. which segments they should consider divesting. How would you approach?

I would use the growth matrix dimensions to assess market attractiveness and complement the case framework with financial analysis, etc...

Hope it helps,

Andrea

Was this answer helpful?
3
Vlad
Expert
replied on Apr 09, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

I do not recommend using this matrix as the initial structure since it's too narrow and does not help you with diagnostics. I can hardly imagine a situation when you really have to draw down such matrix. Moreover, it may sound like a textbook approach. Though feel free to use the concepts like "cash cow" in your analysis.

You can use it while problem-solving the solution at the end of the case in the revenue growth cases or portfolio strategy cases.

Here is the typical structure for revenue growth cases:

Analyze the market:

  • Size and growth rates
  • Segments (geographical, customer, product)
  • Distributors / Suppliers
  • Regulation
  • Key market trends

Analyze the competitors:

  • Market shares, growth rates, profits
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

Analyze our company:

  • Market share, growth rates, profit
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

How to increase revenues:

  • How to increase the scope: Product / customer scope, geographical scope
  • How to improve value proposition (How to fix your weaknesses and improve your strengths; Potential increase in price and volumes)
  • How to answer the competitors (Unique or hard to build property and contracts; Customers / suppliers / complements with lock-in; Reputation and relationships; Organizational capabilities; Product features and know-how)
  • Other benefits of scale (Spreading Fixed costs, Change in technology, Bragaining power)

Best

Was this answer helpful?
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely