Most business graduates, leaders and marketing gurus have long understood Henderson's BCG Matrix (Dogs & Star Chart). We also know that products have a life cycle and hence companies continually innovate and change so as to keep the product and current technologies at the forefront. But what is company's attitude like internally?
It has been my experience that an organization with "Cash Cows" (low growth, high market share) tend to "defend" their position against competitors and it is the defensive behaviour, that is enabling your competitors to understand your business, in both the upstream and downstream activities. Staying defensive, you are focused are margins... and each year, quarter-by-quarter you start to see pricing pressure. So you dig in to defend your position by changing and innovating in very safe, low investment environment as you try to maintain your margin and market share.
Margins are a "result".... NOT the focus. Your customers are the focus. Get out there and listen to your customers and be a little aggressive and begin to "extend"....not defensive.
Rhonda
"Margins are a "result".... NOT the focus. Your customers are the focus. Get out there and listen to your customers and be a little aggressive and begin to "extend"....not defensive.
ReplyDelete"From first hand experience I vote this as one of the most important principles of business and life," "Smart"
Cheers,
The Caveman