PRESENTATION ON

PRESENTED BY – HIMANSHU BHATNAGAR

CONTENTS
• INTRODUCTION
• THE BASIC IDEA
• THE GRAPH
• CASH COWS
• DOGS
• STARS
• THE QUESTION MARK
• USES
• LIMITATIONS
• EXAMPLES
• REFERENCES
• QUERIES
 BOSTON CONSULTANCY GROUP
MATRIX

THE BASIC IDEA

“If a product has a bigger market share, or

if the product’s market grows faster it is
better for the company”
INTRODUCTION
• Based on product life cycle, it is a ‘Portfolio
Management Tool’.

• Developed in early 70s by Boston Consulting Group.

• Used to determine upon the priorities given in the

product portfolio of business unit.

• Has two dimensions market share and market

growth.
H
H
H
H
H
H
h
CASH COWS
• Profits and cash generation are high and
because of low growth, investments needed
are low.

• Cash cows are often the stars of yesterday and

they are foundation of a companty
DOGS
• Low market share low growth rate.

• They are cash traps.

• Liable to be divested
STARS
• Generate large amount of cash.

• Have strong relative market share.

• Consume large amount of cash due to their high

growth rate.

• It is suggested that attempts should be made to hold

market share, because they are future cash cows.
THE QUESTION MARK

• Have low market share.

• High cash demands and low returns.

• Market growth is unpredictable.

USES…..

• BCG model is helpful to evaluate balance in firm’s

current portfolio of Stars, Cash Cow, Question mark
and Dogs.

• Is applicable to large companies that seek volume and

experience effects.

• Is simple, easy to understand and easy to apply.

• Provides a base for management to decide and prepare

for future actions.
LIMITATIONS
• High market share is not only the success factor.

• Market growth is not only indicator of market attractiveness.

• Sometimes dogs can earn even more cash than cows.

• A high market share does not necessarily lead to profitability all the
time.

• Limited to only two dimensions.

• A business with a low market share can be profitable too.

• It also neglects small competitors that have fast growing market

shares.
THE BCG MATRIX FOR HUL-CASH COWS

LOW
GROWTH

HIGH MARKET SHARE

BCG MATRIX FOR HUL- STARS

HIGH
GROWTH

HIGH MARKET SHARE

BCG MATRIX FOR HUL- QUESTION MARK

HIGH
GROWTH

LOW MARKET SHARE

THE BCG MATRIX FOR HUL-DOGS

LOW
GROWTH

HIGH MARKET SHARE

THE BCG MATRIX FOR ITC LTD.
Stars ?
Hotels Paperboards/Packaging. •FMCG- Others
Agri business.

Cows Dogs

Cigarettes ITC Infotech.

REFERENCES
• Google images.com
• hul.co.in
• Netmba.com
• Quickmba.com
• valuenotes.com
• Valuebasedmanagement.net
QUERIES
THANK YOU