The document presents an overview of the BCG Matrix and Porter's Five Forces as frameworks for business strategy. The BCG Matrix helps in identifying resource allocation for maximizing growth and profitability by classifying products based on market share and growth rate, while Porter's Five Forces analyzes competitive dynamics within an industry. Key factors include rivalry among competitors, threat of substitutes, buyer and supplier power, and barriers to new entrants.

1. PRESENTATION ONPRESENTATION ON
BCG Matrix & Porter’s Five forcesBCG Matrix & Porter’s Five forces

2. SUBMITTED TO
NAME OF TEACHER :SHARMIN AHKTER
DEP. OF FINANCE
PORT CITY INTERNATIONAL UNIVERSITY
 Submitted By
Name of Group:The Corporators
Program: BBA

Name ID
1.Shifuddin Nishad 00805574
2. Md. Sazzad Hossain 00805546
3.Rifat karim 00805567
4.MD.Sajjad Islam faisal 00805544
5.MD.Ariful Islam 00805569
6.Farhan Naim Oni 00805592

3. Boston consulting group
(bcg)
• It’s a Growth-
Share Matrix
which is a
portfolio planning
model developed
by BRUCE
HENDERSON

4. BCG MATRIX PLANNING MODEL

5. •Cash cow is the most mature market
because it has a stable earning.
• Growing rapidly,
don’t generate much
cash and low market
share
•It is the lowest market
share , a growth rate
and neutral or negative
cash flow.
• Generates large amount of
cash strong relative market
share and neutral cash flow
Explanation

6. BENEFITS
• BCG matrix is simple & easy to understand
• It helps to quickly & simply screen the opportunity open to
you, & help you think about how you can make the most of
them.
• It is used to identify how corporate cash resources can best
be used to maximize company’s future growth &
profitability.

7. LIMITATION
• BCG matrix uses only two dimensions relative market
share & market growth rate.
• Problem of getting data on market share & market
growth
• High market share does not mean profits all time.
• Business with market share can be profitable too.

8. PORTER’S FIVE FORCES
• Porter's five forces
analysis is a framework
for industry analysis and
business strategy
development formed by
Michael E. Porter.

9. Porter’s Five Forces Model

10. Rivalry among current competitors
• Rivalry refers to the competitive struggle for market share
between firms in an industry.
• Extreme rivalry among established firms poses a strong
threat to profitability.
• Competition is high in apparel industry

11. Substitute product
• These are the alternative products/ brands satisfying the
similar need of the customer
• Substitute products affect when the switching cost is high
• Switching for quality, durability and status

12. Threat of Substitute: Examples

13. Power of buyers
• Buyers are concentrated or purchases are large relative
to seller’s sales
• Purchase accounts for a significant fraction of supplier’s
sales
• Products are undifferentiated
• Buyers face few switching costs
• Buyers’ industry earns low profits
• Product unimportant to quality

14. Power of Suppliers
• Supplier industry is dominated by a few firms
• Suppliers’ products have few substitutes
• Buyer is not an important customer to supplier
• Suppliers’ product is an important input to buyers’ product
• Suppliers’ products are differentiated
• Suppliers’ products have high switching costs
• Supplier poses credible threat of forward integration

15. Threat of New Entrants
• Economies of Scale
• Product Differentiation
• Capital Requirements
• Switching Costs
• Access to Distribution Channels
• Cost Disadvantages Independent of Scale
• Government Policy