Breakwater Products plc produces a range of leisure products for the UK market. Origin ally, the company
Question:
Breakwater Products plc produces a range of leisure products for the UK market. Origin ally, the company was set up to produce rubber airbeds and swimming rings in the 1950s as swimming boomed as a leisure pursuit. From these humble beginnings the company now produces over 150 products, all in some way connected with leisure pursuits.
The company is organized into four strategic business units (SBUs). This organiza -
tion is based on the fact that the different business units supply different end-use mar -
kets and/or customers and in doing so are responsible for different product ranges.
So we have the following strategic business units together with their latest market share and market growth rates for the previous year:
SBU1 Inflatable products: including the original airbeds and swimming rings (now in plastic) but also including fun items and inflatable dingys, etc.
Market share for this SBU 55% (UK market)
Market growth rate 5%
SBU2 Wheeled products: including skate -
boards, mountain bikes and scooters, including the most recent fashionable city scooters, etc.
Market share for this SBU 20%
Market growth rate 15%
SBU3 Outdoor products: including tents, climb ing boots and clothing, acces -
sories etc.
Market share for this SBU 5%
Market growth rate 3%
SBU4 Fitness products: including fitness wear, rowing machines, exercise bikes, cross trainers, etc.
Market share for this SBU 8%
Market growth rate 15%
CASE STUDY QUESTIONS 1 How can Portfolio Analysis be used by Breakwater Products PLC?
2 What information would be required in order to conduct a BCG Analysis?
Step by Step Answer:
Essentials Of Marketing Management
ISBN: 9780415553476
1st Edition
Authors: Geoffrey Lancaster, Lester Massingham