Professional Documents
Culture Documents
Group Strategy
Harrisons
Travel c KEC RInt.,
Market growth rate
c Ceata
High
KEC Int. R h
Raychem,
a e
Zensar,
y m
Ceat c Spencers
c
c Travel
High Low h
Relative Market Share RPG RLife e Time
Sciences m
Why conglomerates slump
Fortune500- Dropping out of the list
Many companies dropped out of the list due to their inability to
innovate and introduce relevant products or services in the early to
Growth stages in the product life cycle. Thus they remained as
question marks without moving to Star or Cash cow.
New Sectors to get into- Adding Question marks to the portfolio and
nurture them to be stars
Raychem Group can get into Automobile component manufacturing- If
starting a new division from scratch is difficult, acquire an existing player
RPG group can get into plying chartered flights on all routes as well as
small flights(20-30 seaters) on routes covering tier 3-4 cities and distances
less than 300 kms.
RPG Group- Branding
Projection of the conglomerate under Umbrella
campaigns
- This helps in Brand association
- Reduces the cost of communication
- Maintain uniformity and consistency in the communication
- Builds credibility into group companies
Ex. Mahindra Rise campaign where all its services are projected
under the groups name
Auto
Component
Sales
CEAT
OEMs
relation
References
1. Core Competence analysis-
http://www.mindtools.com/pages/article/newTMC_94.htm
2. Components of Capabilities-Driven Strategy
http://www.booz.com/global/home/what_we_think/cds_home/the_c
oncept
3. Model of Intel Capital- Venture capital
http://www.intel.com/about/companyinfo/capital/index.htm
Thank you