Answer to Question #181019 in Management for Karabo Maluleke

Question

Samsung is a company consisting of multiple strategic business units (SBUs) with a diverse set of products. Samsung sells phones, cameras, laptops and printers, watches, TVs, microwaves, refrigerators, laundry machines, and even chemicals and insurances. The challenge for the company has been the formulation of strategy in the way the company manages the portfolio of products. 

1.1 As a recently appointed marketing manager you are required to develop a BCG matrix for  

   the company to assist corporate strategists in making decisions on allocating resources to 

   and distributing money across all business units. In your answer provide one product as 

   an example for each category (Dogs, Cash cows, Question marks and Stars), also explain 

   your reason for putting the product in that category.​​​       (12 marks)

Answer 1

In the scenario provided, the BCG matrix will help the company in making effective decisions towards the product portfolio strategies. It would help the business in long-term strategic planning, enabling it to consider growth opportunities by assessing product portfolio. As a marketing manager, the BCG matrix that will be applicable in the firm will be Cash Cows. Even though cash cows exhibit low growth and an augmented market share, it enables the company to categorize products based on the ROI. The firm need to identify products that brings more income to the business and utilize the cash generated to promote other commodities and run various operations.