BCG for recording hhhdyydhdydudhd(2).pptx

Bcg study material

1. BCG BOSTON CONSULTING GROUP Dr. Swati Modi

2. BCG The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.

3. BCG MODEL The growth share matrix was created in 1968 by BCG’s founder, Bruce Henderson. A portfolio management framework ( corporate portfolio tool ) that helps companies decide how to prioritize their different businesses. The two dimensions on the basis of which this matrix is created are Market growth and relative share. The matrix reveals two factors that companies should consider when deciding where to invest—company competitiveness, and market attractiveness—with relative market share and growth rate as the underlying drivers of these factors.

4. BCG Use Relative Market Share in a BCG matrix, comparing Company’s product sales with the leading rival's sales for the same product. For example, if your competitor's market share in the  automobile industry  was 25% and your firm's brand market share was 10% in the same year, your relative market share would be only 0.4.

5. BCG The four quadrants are designated  Stars (upper left), Question Marks (upper right), Cash Cows (lower left) and Dogs (lower right) . Place each of your products in the appropriate box based on where they rank in market share and growth

6. BCG MATRIX The four quadrants represents a specific combination of relative market share, and growth: Low Growth, High Share.  Companies should milk these “cash cows” for cash to reinvest. High Growth, High Share.  Companies should significantly invest in these “stars” as they have high future potential. High Growth, Low Share.  Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Low Share, Low Growth.  Companies should liquidate, divest, or reposition these “pets.”

7. DOGS If a company’s product has a low  market share  and is at a low rate of growth, it is considered a “dog” and should be sold, liquidated, or repositioned.  Dogs , found in the lower right quadrant of the grid, don't generate much cash for the company since they have low market share and little to no growth. Because of this, dogs can turn out to be cash traps, tying up company funds for long periods of time. For this reason, they are prime candidates for  divestiture

8. Cash cows Products that are in low-growth areas but for which the company has a relatively large market share are considered “cash cows,” and the company should thus milk the cash cow for as long as it can. Cash cows, seen in the lower left quadrant, are typically leading products in  markets that are mature

9. Stars Products that are in high growth markets and that make up a sizable portion of that market are considered “stars” and should be invested in more. In the upper left quadrant are stars, which generate high income but also consume large amounts of company cash. If a star can remain a market leader, it eventually becomes a  cash cow  when the market's overall growth rate declines

10. Question marks Questionable opportunities are those in high growth rate markets but in which the company does not maintain a large market share Question marks are in the upper right portion of the grid. They typically grow fast but consume large amounts of company resources. Products in this quadrant should be analyzed frequently and closely to see if they are worth maintaining Also known as problem child

11. NESTLE Nestle is one of the world’s leading FMCG company. It has its presence in about 187 countries. To serve its customers, they maintain a broad brand portfolio, with numerous products under it. And, yet is successfully leading in most of the markets worldwide. For Nestle, there are some products those have been undoubtedly the Cash Cows. They are- Nestle’s Maggi Noodles, NesCafe and its popular chocolates like KitKat , Munch. Nestle’s Nescafe Coffee (like Nescafe Latte) fall in the Star quadrant of the BCG Matrix of Nestle. Nestle Everyday, Nestlé slim and Nestlé Milk maid are some of the milk and milk-based products from the house of Nestlé. And they come under Question Mark category. Nestle Milo and Koko Crunch can be put in this category. They did not have any significant grasp in the market.

12. The strategies that are used by marketers are-  Build, Hold, Harvest and Divest.

13. The  Boston Consulting group's  product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or develop products. It's also known as the Growth/Share Matrix.

14. TATA GROUP TATA MOTORS TATA REAL ESTATE TATA COMMUNICATION DOCOMO (.CASH COWS) TITAN (STARS ) TATA HOTELS

15. APPLE Apple TV  makes a bit of money, but it’s not reaching its true potential. There are two products of Apple that fall under the Cash Cow category of BCG Matrix of Apple, the first being  Apple iTunes  and the second being  Apple MacBook and iMac’s . Over the years iTunes, MacBook and iMac’s have attained the position of being a Cash Cow for the company. Apple iPad  and  Apple Smartwatch  are also regarded as the Stars for the company and are currently in the transition to become the  Cash Cows  for the company. For Apple, their   iPhones  are undoubtedly are the Stars for them. With every new launch of Apple iPhone , the company manages to set new sales records. In BCG Matrix of Apple, Apple iPods can easily be placed in the  Dogs  category

16. TAKE HOME MESSAGE The BCG growth-share matrix is a tool used internally by management to assess the current state of value of a firm's units or product lines. The growth-share matrix aids the company in deciding which products or units to either keep, sell, or invest more in. The BCG growth-share matrix contains four distinct categories: "dogs," "cash cows," "stars," and “question marks.”

17. Relevant video https://www.google.com/search?q=BCG+matrix+in+strategic+management+videos&sca_esv=5ab0a33a7a1c4e74&rlz=1C1UEAD_enIN994IN994&ei=Lv-ZZrfEF8rG4-EP7Kml8AQ&ved=0ahUKEwi3k4bwtLKHAxVK4zgGHexUCU4Q4dUDCA8&uact=5&oq=BCG+matrix+in+strategic+management+videos&gs_lp=Egxnd3Mtd2l6LXNlcnAaAhgCIilCQ0cgbWF0cml4IGluIHN0cmF0ZWdpYyBtYW5hZ2VtZW50IHZpZGVvc0iDXFDGBlj-V3ABeAGQAQCYAaIDoAHwLqoBCjAuMjIuNS4yLjK4AQPIAQD4AQGYAhSgAuIYwgIKEAAYsAMY1gQYR8ICBRAAGIAEwgIGEAAYCBgewgILEAAYgAQYhgMYigXCAggQABiLAxjvBcICCxAAGIAEGKIEGIsDwgIIECEYoAEYwwTCAgoQIRigARjDBBgKmAMAiAYBkAYIkgcGMS4xNy4yoAfcUg&sclient=gws-wiz-serp#fpstate=ive&vld=cid:bc5c66d1,vid:gNR49lk5dS0,st:0

18. Relevant video https://www.youtube.com/watch?v=yulWLHRdNVQ

19. https://www.google.com/search?q=strategies+for+success+by+top+companies+videos&sca_esv=5ab0a33a7a1c4e74&rlz=1C1UEAD_enIN994IN994&ei=7AOaZrKKCdez4-EPhv21oAk&ved=0ahUKEwiysOiyubKHAxXX2TgGHYZ-DZQQ4dUDCA8&uact=5&oq=strategies+for+success+by+top+companies+videos&gs_lp=Egxnd3Mtd2l6LXNlcnAaAhgDIi5zdHJhdGVnaWVzIGZvciBzdWNjZXNzIGJ5IHRvcCBjb21wYW5pZXMgdmlkZW9zMgcQIRigARgKMgcQIRigARgKMgcQIRigARgKMgUQIRifBTIFECEYnwUyBRAhGJ8FMggQIRiLAxifBTIIECEYiwMYnwUyBRAhGJ8FMgUQIRifBUjIG1C-BFj6EnABeAGQAQCYAesBoAHVB6oBBTAuMy4yuAEDyAEA-AEBmAIGoAKACMICChAAGLADGNYEGEfCAgUQIRigAZgDAIgGAZAGCJIHBTEuMy4yoAeDKA&sclient=gws-wiz-serp#fpstate=ive&vld=cid:98729595,vid:t429z5qTIHE,st:0