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Advanced Accounting Managment

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1. How would you categorize the three products in terms of the BCG matrix and
Porter's low cost/product differentiation categories? Are there inconsistencies between BCG and Porter and, if so, can you resolve them? (20%)

Yellow Blue Red
Porter’s framework Cost leadership Cost focus Differentiation focus
BCG matrix Star Question mark Cow cash

1. Yellow clear rite dye

Market segment of products is broad segment . And the products is identical products hence, the cost leadership can be appropriate category for this product.
From the information of yellow dye, the market growth increase strongly from 1986-1993 but the market share of Monarch is slightly reduce from 50% to 49%. Hence, I would put this product into Star categories of BCG matrix

2. Blue clearbrite dye
Light sensitive feature are the most important factor to consider but non light sensitive segment also can use this products. As a result, this products focus on broad segment. .
Besides, the cost focus in important in this products line as Blue CB and Blue 79 have the same market share on 1990 even the feature of products are different .so it is clear that they focus on cost leadership about this products.
BC maxtrix, the market share of Monarch is quite low 22% on 1993 while industry volume increase sharply . So this products can be classify as Question mark

3. Red clearbrite dye
About this products, I believe red clearbrite dye is differentiation focus products as the scope of business is quite small for people who want to use high quality product regardless of the price. That is the reason why Monarch still leading the market share even their price is higher than other competitors.
There was slightly increase in term of industry volume of this products but the market share of Monarch is quite high, hence this product is cash cow.

2. Using Porter’s framework (low

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