BCG matrix
The BCG growth share matrix is a PORTFOLIO PLANNING MODEL developed by Bruce Henderson of the Boston consulting group in
the early
1970’s.It is based
on the observation that a company’s business unit can be classified in to four categories
based on combination of market growth and
Market shares
relative to the largest competitor, hence the name “growth-share”.
BCG matrix is used
for developing market strategies and performing marketing analysis is related
to portfolio planning and analysis.
The portfolio
analyzed with the BCG matrix is generally portfolio of product and/or services
offered by company or strategic business unit (SBU) managed by the company.
“A STRATEGIC BUSINESS UNIT is a
significant organization segment that is analyzed to develop organizational
strategy aimed at generating future business or revenue.”
Exactly what
constitutes an SBU varies from organization to organization in larger
organizations; a SBU could be a company division, a single product or a
complete product line.
In smaller organization,
it might be the entire company.
BCG matrix has two
dimensions market share and market growth .the basic idea behind it is: if a
product has biggest market share, or if the products market grows faster
It is better of the
company.
The four segment of
BCG matrix: - STAR, high growth and high market share.
CASH COW, low growth and high market share
DOG, low growth and low market share
QUESTION MARK high
growth and low market share.
MARUTI SUZUKI
MARUTI SUZUKI, one of India’s leading automobile manufacturer and the
market leader in the
Car segment, both in terms of volume of vehicles sold and revenue earned .BCG MATRIX of MARUTI SUZUKI
Growth rate. SWIFT, SWIFT DESIRE AND ZEN ESTILO is the fast growing and has potential to gain substantial profit in the market.
QUESTION MARK: there are also called as wild cats that are new products with potential for success but there cash needs are high
And cash generation is low. In auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been improve the organization reputation
As they want successful not only in Indian market but as well as in global market.
CASH COW: It has high relative market share but compete in low growth rate as they generate cash in excess of their needs.
MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR.
DOG: The dogs have no market share and do not have potential to bring in much cash.BALENO, OMINI, VERSA There business have liquidated and trim down thus
The strategies adopted are that are harvest, divest and drop.
BCG matrix can serves as a simple tool for viewing a corporation’s business portfolio at a glance , and may serves as a starting point for discussing
resource allocation among strategic business units.
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