BCG Matrix

BCG matrix stands for the Boston Consulting group matrix. This matrix is basically, used to
analyze the portfolio of a company on the basis of factor like MAKRET GROWTH and
MARKET Share. This matrix is best to use when we have multiple products and we don’t know
which product needs how much effort and at which point this product rank up in the market.
Depending upon the above factors we categories different products in following things
 Stars
 Cash cows
 Question mark
 Dog

Stars:
Stars are high-growth, high-share businesses or products. They often need heavy
investments to finance their rapid growth. Eventually their growth will slow down, and they will
turn into cash cows.

Cash cows:
Cash cows are low-growth, high-share businesses or products. These established
and successful SBUs need less investment to hold their market share. Thus, they produce a lot of
the cash that the company uses to pay its bills and support other SBUs that need investment.

Question Mark:
Question marks are low-share business units in high-growth markets. They
require a lot of cash to hold their share, let alone increase it. Management has to think hard about
which question marks it should try to build into stars and which should be phased out.

Dog:
Dogs are low-growth, low-share businesses and products. They may generate enough
cash to maintain themselves but do not promise to be large sources of cash.
The business I chose for the BCG matrix is US DENIM MILLS
Company background

US Denim Mills Private Limited was established in 2005. It deals in the Premium
quality Denim. US Denim is a Lahore, Pakistan- based fabric mill supplying denim to fashion
industry companies that need absolutely reliable quality and delivery at competitive prices. US
Denim constantly improves to remain state-of-art in all its processes and as a product innovator,
so that customers are confident in partnership with them. US Denim Mills is 100% equity-based
 family-owned entity. US Denim is owned by Mr. Mian Ehsan and Mr. Javaid Bhatti. The
Production Capacity of this organization is 36 million meter per year and its sales turnover is
around 100 million US $ per annuum. US Denim is among market leaders and trend setters.
They have edge over competitors due to flexibility. US Denim Mills has high clientage it deals
with international brands such as Tom Tailor, Levi Strauss, Tesco Stores, H&M, Marks and
Spencer, Fat Face, etc. The product line of the of US Denim Mills results in the Finished Denim
Fabric. There is very much diversity of employee. Their workforce consists of local as well as
expatriates without any discrimination on basis of sex, ethnicity, geography or political
affiliation. In the view of national and international business. US Denim Mills is 100% export-
oriented entity engaged in direct and indirect export business.
Here is the BCG matrix of the company

STARS QUESTION MARK

LOW DENIUM THREADS Denim Shirts and apparel
The reason of denim threads to be in star is that it has The reason to place it in question mark is that these
been export widely in the world but to be in final are independent products don’t require a lot of
form it needs some assistance from other textiles. It support but organization is still confused about it
MARKET is generating very good profit but requires heavy that when will it be changed into stars
GROWTH investment every time
RATE

CASH COW DOG

Denim Jeans Cotton Pants

HIGH The reason to put it in cash cow is that it These are those SBUS of the market that don’t
generates good profit and has high growth need large investments and are not generating
rate and market share it is also generating high revenue and profit but generate enough
the profit that supports other SBUS cash that promise their stand by.

HIGH LOW

RELATIVE MARKET SHARE