Better than BCG matrix because it:

Examines competitive strengths and market attractiveness in more detail.

Uses a range of variables to evaluate:

competitive strength factors (such as)
Size, growth, market share, brand equity, profitability, customer loyalty, etc.

Industry attractiveness (such as )

Price levels, competitive intensity, Govt. regulations, technological level.

Business Screen

continued

Competitive Strength questions such as :

Are our production facilities modern & efficient ? Do we possess competitive technology ? Do customers have a positive image of our products ? Are we cost competitive ? Are our distributors well established & supportive ? Do we have stable and reliable suppliers ?

Business Screen

continued

Market attractiveness questions such as:

Is the industry growth rate high? Is the market size large enough to sustain many competitors? Are industry sales susceptible to cyclical, seasonal or other fluctuations? Is the rate of product obsolescence high?

Business Screen

continued

Market attractiveness questions such as

Does extensive government regulation cause problems ? Is the industry demand high/low compared to industry capacity? Is there a risk or raw material or component shortage? Are there a large number of well financed competitors?

Business Screen

continued

Two scores for each SBU/business

One for market attractiveness (15). Other for competitive strength (15). Business Screen identifies nine portfolio categories using the market attractiveness and competitive strength scores.

Analysis

Industry Attractiveness High Medium Low

High

INVEST

INVEST

PROTECT

Competitive strength

Medium

INVEST

PROTECT

HARVEST

Low

PROTECT

HARVEST

DIVEST

Businesss competitive position

Industry attractiveness High Medium Low High Medium Low

1 1 2

1 2 3

2 3 3

1 Invest/grow 2 Selective investment/ maintain position 3 Harvest/divest

9