BCG MATRIX OF CHAUDHARY GROUPS

-submitted by- Roshan Gyawali

The BCG matrix is a strategic management tool that

was created by the Boston Consulting Group, which
helps in analysing the position of a strategic
business unit and the potential it has to offer. The
matrix consists of 4 classifications that are based on
two dimensions. These first of these dimensions is
the industry or market growth. The other of these
dimensions is the relative market share of the
strategic business unit. Strategic business units are
placed in one of these 4 classifications. The BCG
matrix for Chaudhary Group Rebuilding Nepal B will
help decide on the strategies that can be
implemented for its strategic business units
According to this technique,business is classified as
high or low performance depending upon market
share and market growth rate,where market growth
rate means the The rate at which a market's size is
increasing and the portion of total sales covered in
the market by the organization is market share.
Relative market share. One of the dimensions used to evaluate
business portfolio is relative market share. Higher corporate’s
market share results in higher cash returns. 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.
Market growth rate. 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.

Brief Information of brand CG

Chaudhary Group (CG Corp Global) is a multi-national
company of Nepal(1968) Its businesses include financial
services, consumer goods, education, hospitality, energy,
consumer electronics, real estate, biotech, and alternative
medicine. The group owns 136 companies in 15 different
business verticals across five continents.
Question mark-  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.The
product of CG that falls under the question mark category is CG Nepal
Ice as it needs higher level of investment an absorb higher amount of
cash.

Strategy choice:  market development

Stars- Stars operate in high growth industries and maintain high

market share. Stars are both cash generators and cash users. WAI
WAI has successfully been able to make the place in starts by its high
market rate and market growth. Here the level of income and
investment are relatively same.

Strategy choice:  market penetration

DOGS-  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.
Winston CG cigarettes are low in market growth rate and market
share.They are of high cost with mild quality. They are nearly dead in
market.

Strategy choice:   liquidation

Cashcows-  Cash cows are the most profitable brands, they generate
more cash than requires, they are often stars of yesterday and the
foundation of the company just like surya Nepal of chaudhary
groups.It was the star of past but fell down later.

Strategy choice:   Product development

 BCG MATRIX OF BCG

STARS QUESTION MARK

CASHCOWS DOGS