Relative Position (Market Share)

1. High Star Question Business Growth Rate Mark Relative Position (Market Share) Low High Cash Cow Dog Low Learn about BCG Matrix at http://www.valuebasedmanagement.net/methods_bcgmatrix.html

2. Why Technology? • Technology has been significantly changing our life-style and living environment steadily since the 1970s. • IBM’s recent global study of CEOs, “Enterprise of the Future”, found that, at its core, the enterprise of the future is … • Hungry for change; • Innovative, beyond customer imagination; • Globally integrated; • Disruptive by nature; and • Genuine, not just generous. • The complex nature of business and the flattening of business processes and strategies are forcing critical reliance on technology.

3. The experience of the Ford Motor Company from 1908 to 1923 illustrates how experience curve strategy can cause a firm to focus obsessively on costs and thus fail to innovate ending up with an increa-singly obsolete product. Average unit price of Ford Model T (in 1958$) Source: W.J. Abernathy & K. Wayne: “Limits of the Learning Curve”, Harvard Business Review, Sept-Oct 1974 Cumulative units produced

4. Abundant resources ACTUALIZERS Principle oriented Status oriented Action oriented FULFILLEDS ACHIEVERS EXPERIENCERS BELIEVERS STRIVERS MAKERS Minimal resources STRUGGLERS The VALS 2TM classification of eight American lifestyles* *Martha Farneworth Riche: “Psychographics for the 1990s” American Demographics, July 1989, p. 24-25

5. Competitive Advantage Lower cost Differentiation Differen-tiation Cost Leadership Broad target Competitive Scope Focussed Differen-tiation CostFocus Narrow target Porter’s generic competitive strategies Michael Porter: The Comparative Advantage of Nations (The Free Press, New York, 1990)