4 Conclusion

McKinsey matrix was created for further specifications of the BCG matrix. There are fewer limitations, so the overview of the brand portfolio is better. But nevertheless there are still limitations which you can only avoid by more specifications. But this is exactly the contradiction. Portfolio analysis is developed to make things easier, with the result that the analysis is inexact and needs more research (Doyle and Stern, 2006, p.110).

Every strategic decision has to be an individual decision with the use of the complete statistical material like market share, turnover and benefit. But the company’s situation has to be considered as well. Do they have enough buffers to risk a failure? Are they able to accept a loss to support other brands? There are lots more of these questions every manager has to ask himself before he takes a decision. The portfolio models are only an aid within the decision-making process, but they should never have been used as a decision-making tool.

Max Adler Salzhemmendorf Webdesign

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