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Cognosis.co.uk 2. Product portfolio analysis Often Country Email List companies are the first to divest weak product lines in times of scarcity, leaving raw materials alone allocated to products that are profitable. In itself, cutting the portfolio is a healthy response, if product Country Email List and market attractiveness is also taken into account. At the time, McKinsey developed the MABA analysis for General Electric. A MABA analysis looks broader than just the profitability of Country Email List products. It compares the relative market attractiveness (MA) of a business activity or product-market combination with competitive strength, or business attractiveness (BA).
Also read: Is marketing less important in times Country Email List of scarcity? In the event of shortages, product-market combinations, countries or geographies are given priority where both market attractiveness and competitiveness are Country Email List high (see figure). In other markets, they cut supply or raise prices to the extent that customer Country Email List demand, cost structure and competition allow. The MABA analysis, together with the BCG matrix, forms the basis of many computer models and advanced portfolio simulations of today. Marketing Attractiveness Country Email List Business Attractiveness MABA analysis, source: house of control 3. Customer mix As soon as there is a scarcity in the product range, the inevitable question arises which customers should be given priority with the delivery and which not.
Sometimes the government imposes restrictions on Country Email List this. But according to Kotler, in the early 1970s, companies gave priority to supplying the largest and strongest customers. Many companies divided their customer base into A, B, C and D Country Email List customers according to a customer pyramid. In addition, the top 20% of customers accounted for 80% of the turnover. The idea behind this is that if you mainly give the scarce products to the Country Email List largest customers, the profitability is highest. We now know that large customers are not always the most profitable in the long run. It is better to divide the customer base according to profitability and loyalty and to approach each segment differently.