BCG matrix focus on optimum return on investment & porter's five forces model will help you to assess the attractiveness of an industry or a market by analyzing the forces acting upon it.

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