BCG Matrix
Sign in

BCG matrix

pursuing MBA

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

STAR: The Company has long run opportunity for growth and profitability. They have high relative market share and high

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.

 

 

 

 

 


start_blog_img