BCG matrix
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BCG matrix

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BCG matrix BCG matrix Presentation Transcript

  • BY:- APUR DESHMUKH CHIRAGDEEP SINGH LOKESH SAHANI PIYUSH MALANI MOHD. AARIF KHAN RAHUL VED
  • SBU Sales Number Sales of the Annual RELATIVE MARKET log (Rs. of Co. top 3 Co. market SHARE mn) (Rs. bn) growth 0.7, 0.7, 0.5 A 0.5 8 15% 0.5/0.7= -0.146 0.714 B 1.6 22 1.6,1.6, 1 18% 1.6/1.6= 0.00 1 C 1.8 14 1.8,1.2, 1 07% 1.8/1.2= 0.176 1.5 D 3.2 05 3.2 , 0.8 ,0.7 04% 3.2/0.8 = 0.6020 4 E 0.5 10 2.5, 1.8 ,1.7 04% 0.5/2.5 = -0.698 0.2
  • 20% (0.00,18%) PRODUCT SALES GROWTH RATE (-0.146,15%) 10% (0.176,7%) (-0.698,4%) (0.6020,4%) 0% 1 0 -1 RELATIVE MARKET SHARE
  • - Recommendation - INCREASE MARKET SHARES AND THUS TRY TO GET INTO STARTS QURDRANT. - Solution - TO INCREASE MARKET SHARES THEY NEED CASH WHICH CAN BE EXTRACTED FROM THE CASH COW SBU viz. C & D.
  • - Recommendation - MAINTAIN THEIR MARKET POSITION AND TRY TO INCREASE MARKET SHARES. THUS TRY TO GET FURTHER INTO THE STAR QURDRANT AS MUCH AS POSSIBLE BEFORE ENTERING INTO THE CASH COW. - Solution - THEY ARE ALREADY IN THE STAR QURDRANT AND THUS THEY CAN FINANCE THEMSELVES FOR INCREASING THEIR MARKET SHARES. IF NEEDED THEN THEY CAN TAKE CASH FROM THE CASH COWS viz. D & C.
  • - Recommendation - SBU “C” IS ABOUT TO ENTER INTO THE DECLINE STAGE i.e. DOG QUARDRANT, THUS THEY ARE RECOMMENDED TO START HARVESTING WITH THAT SBU. SO THE CASH GENERATED CAN BE USED BY SBU “A” & “B”.
  • - Recommendation - SBU “D” IS WELL IN THE CASH COW QURDRANT, THUS THEY ARE RECOMMENDED TO HOLD THAT MARKET POSITION AND START HARVESTING WITH THAT SBU. SO THE CASH GENERATED CAN BE USED BY SBU “A” & “B”.
  • Recommendation  SBU “E” IS IN THE DOG QURDRANT, THUS THERE ARE  NO REAL GROWTH OPPORTUNITIES AVAILABLE. SO THE COMPANY SHOULD USE LEAST FUNDS AND WORKFORCE ON THIS SBU AND SHOULD DIVEST IT AS SOON AS THEY GET THE BEST PRICE.
  • ANS. YES, THE COMPANY IS HAVING A VERY HEALTHY MIX AS THEY HAVE ALL THE SBU’s IN GOOD MARKET POSITIONS EXCEPT “E”, WHICH THEY CAN EASILY DIVEST WITHOUT INCURRING LOSSES.
  • ANS. LIMITATIONS:- 1. THE PRODUCT LIFE TIME OR THE LIFE TIME OF DIFFERENT STAGES viz. introduction, growth, maturity & decline ARE NOT KNOWN.
  • 2. High Market shares does not means that the sbu is profitable. 3. Low Market shares does not means that the sbu is not profitable. 4. The frame work assumes that each SBU is independent of the others. In some cases a SBU i.e. in DOG may be helping other SBU’s gaining a competitive advantage. 5. The matrix depend heavily on the breadth of market definition. A SBU may dominate its small niche but have very low market share in the overall industry. 6. No clear definition of what constitutes a market.