Key Takeaways from BCG matrix

Ginger is a “Question mark”. An intensive strategy needs to be adopted and more number of Ginger
hotels needs to be opened in new cities to increase its market penetrations and leverage the high
growth nature of the Budget Hotel segment. If it’s successful it might just become a “Star” in the
future.

Taj Hotels is a “Star”. It has the maximum brand value with all the history associated with it. More
investment needs to be pumped into it to maintain its star status so that it doesn’t shoot beyond the
maturity phase of its product life cycle.

Vivanta is a “Cash Cow”. The main reason for this is the economies of scale that are being offered its
position as a market leader. Its position need to be maintained because this cash may be of use in
the other segments.

Gateway turns out to be a “Dog” from the BCG Matrix. But the growth rate of the segment is actually
not that low so it’s almost at the border of the Dog and the Question Mark. It could be combined
with Vivanta which is a cash cow in the same segment or it could be made more budget oriented like
ginger which enjoys a high market growth rate and is likely to bear high profits in the future.