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(039)
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AMIT JHA
GAURAV GANDHI
BUSINESS PORTFOLIO
ANALYSIS
The analysis methods of the business
portfolio analysis are used in order to
identify and examine the various
strategic alternatives that must be
approached at corporate level.
POTENTIAL BENEFITS
It encourages the promotion of competitive
(COMPETITIVE POSITION)
(STAGE OF
EVOLUTIO
N)
STRONG
AVERAGE
WEAK
DEVELO
P
GROWT
H
SUPER
GROWT
H
MATURIT
Y
DECLIN
E
HOFERS MATRICES
Contd..
Strategic business unit A seems to be a potential
Contd
Unit C has a small market share, and it holds a
Contd
Unit E together with unit F are included into
Disadvantages
Identification of Key Success Factors.
Weight assignment to different Key
Best Use
The DPM shows
Markets categorised based on a scale of
attractiveness to the organisation
The organisations relative strengths in each of
these markets
The relative importance of each market
Brief History
Model Weaknesses
Quadrant names
McDonald initially labeled the different quadrants
as those in the Boston Consulting Group matrix
and received a lot of criticism from this. These
labels created confusion. More recently he merely
refers to these positions but does not label the
quadrants as they were in the past.
Products-for-markets
This concept is confusing to many people and
limits the analysis.
Strategic Emphasis
The McDonald DPM like other models of portfolio analysis
For the first time the business strengths are looked at from
the customers point of view and are therefore more
objective. In the past defining the factors was a very
subjective exercise from the companys point of view. The
Business Strengths in this matrix are relative strengths
(relative to the best in the market)
The DPM can be used at any level in the organisation and for
any kind of SBU.
Summary
Was developed to overcome the limitations seen in the BCG matrix
Conclusion
There is always a better strategy
than the one you have; you just
haven't thought of it yet
Sir Brian Pitman, former CEO of Lloyds
TSB, Harvard Business Review, April 2003
References
Strategic Management-from Theory to
Implementation, 4th edition
David Hussey
http://www.cipher-sys.com/hofhelp /