Professional Documents
Culture Documents
BCG Matrix
BCG Matrix
Graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates
Relative Market Share = SBU market share/ leading competitors market share Market growth rate = growth rate of the industry The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business.
BCG MATRIX
Corporate portfolio analysis tool. Graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates Relative Market Share = SBU market share/ leading competitors market share Market growth rate = growth rate of the industry The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business.
Data card
COMPANY
MARKET SHARE 7%
MICROMAX
MARKET GROWTH 10
What we interpret?
Product in question mark segment. Business unit has a low market share . Market growth is high. Needs more investment in this sector to gain market share. New strategies for the market development of the product.
Mobile Handset
COMPANY
GROWTH RATE 6%
MICROMAX
MARKET GROWTH 10
What we interpret?
SBU in DOG - segment. Business unit has a low market share . Market growth is very low. Needs more investment and effective strategy in this sector to gain market share. It implies high costs, poor quality, ineffective marketing of SBU. Company may have to divest.