If you are working with a product portfolio you have a range of tools at your disposal to determine how each one or a group of the products are doing. Back in a clever chap from Boston Consulting Group, Bruce Henderson, created this chart to help organisations with the task of analysing their product line or portfolio. The matrix assess products on two dimensions. The first dimension looks at the products general level of growth within its market.
The four quadrants of the growth-share matrix. Growth-share matrix is a business tool, which uses relative market share and industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies.
Understanding the tool BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness growth rate of that industry and competitive position relative market share.
These two dimensions reveal likely profitability of the business portfolio in terms of cash needed to support that unit and cash generated by it.
The general purpose of the analysis is to help understand, which brands the firm should invest in and which ones should be divested. One of the dimensions used to evaluate business portfolio is relative market share.
This is because a firm that produces more, benefits from higher economies of scale and experience curve, which results in higher profits. Nonetheless, it is worth to note that some firms may experience the same benefits with lower production outputs and lower market share.
High market growth rate means higher earnings and sometimes profits but it also consumes lots of cash, which is used as investment to stimulate further growth. Therefore, business units that operate in rapid growth industries are cash users and are worth investing in only when they are expected to grow or maintain market share in the future.
There are four quadrants into which firms brands are classified: Dogs hold low market share compared to competitors and operate in a slowly growing market. In general, they are not worth investing in because they generate low or negative cash returns.
But this is not always the truth. Some dogs may be profitable for long period of time, they may provide synergies for other brands or SBUs or simple act as a defense to counter competitors moves. Therefore, it is always important to perform deeper analysis of each brand or SBU to make sure they are not worth investing in or have to be divested.
Retrenchment, divestiture, liquidation Cash cows.
BCG matrix for SBUs STAR Godrej properties Godrej agrovet high G R O W T H low high MARKET SHARE low QUESTION MARK Godrej hershly CASH COW Godrej consumer products Godrej international Nature basket DOG •IT •Kpo •others. bcg matrix hcl infosystem, axis bank bcg matrix, bcg model for godrej, bcg metrix in bank of baroda, learning matrix icici bank login, bcg matrix of tanishq, bcg matrix for bank of baroda, i need bcg matrix . Matrix is one of the strongest home safes available in the market. A fire and burglar resistant safe that looks sleek and is easy to operate, Matrix comes in two variants - Electronic and Manual.
According to growth-share matrix, corporates should not invest into cash cows to induce growth but only to support them so they can maintain their current market share.
Again, this is not always the truth.
Cash cows are usually large corporations or SBUs that are capable of innovating new products or processes, which may become new stars. If there would be no support for cash cows, they would not be capable of such innovations. Product development, diversification, divestiture, retrenchment Stars.
Stars operate in high growth industries and maintain high market share. Stars are both cash generators and cash users. They are the primary units in which the company should invest its money, because stars are expected to become cash cows and generate positive cash flows.
Yet, not all stars become cash flows. This is especially true in rapidly changing industries, where new innovative products can soon be outcompeted by new technological advancements, so a star instead of becoming a cash cow, becomes a dog.
Vertical integration, horizontal integration, market penetration, market development, product development Question marks. Question marks are the brands that require much closer consideration.
They hold low market share in fast growing markets consuming large amount of cash and incurring losses. It has potential to gain market share and become a star, which would later become cash cow. Question marks do not always succeed and even after large amount of investments they struggle to gain market share and eventually become dogs.
Therefore, they require very close consideration to decide if they are worth investing in or not. Market penetration, market development, product development, divestiture BCG matrix quadrants are simplified versions of the reality and cannot be applied blindly. They can help as general investment guidelines but should not change strategic thinking.
Business should rely on management judgement, business unit strengths and weaknesses and external environment factors to make more reasonable investment decisions.ANALYSIS OF HAIR CARE PRODUCTS WITH REFERENCE TO SHAMPOO MARKET IN INDIA Plus, Pantene and H&S which are placed in the ‘Stars’ cell of BCG matrix of shampoo brands of India.
Keywords: Hair care products, Strong players in the economy segment like Godrej. BCG Matrix of Godrej. Godrej Consumer Products (GCPL) is a pioneer among India’s Fast Moving Consumer Goods (FMCG) organizations, with driving Household and Personal Care Products like Good Knight, Cinthol, Godrej No.
1, Expert, Hit, Jet, Fair shine, Ezee, Protekt and Snuggy. BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis.
BCG matrix for SBUs STAR Godrej properties Godrej agrovet high G R O W T H low high MARKET SHARE low QUESTION MARK Godrej hershly CASH COW Godrej consumer products Godrej international Nature basket DOG •IT •Kpo •others. Godrej Electric Forklift Service forklift service manual with,Ask Latest information,Abstract,Report,Presentation (pdf,doc,ppt),godrej forklift service manual with Title Godrej Electric Forklift Service Manual Subject godrej electric forklift.
BCG growth matrix. See more. Attachments. bcg leslutinsduphoenix.com Oct 12, 63 KB Download. Similar Knowledge Landrover Discovery Godrej, Dabur etc. and is behind only HUL. Company’s revenue had doubled to Rs 10, crores during the last financial year. But in all these, one question is worth pondering upon.