BCG MATRIX The Growth-Share Matrix MMM e rena ooBCG MATRIX What is the BCG matrix? * BCG matrix is a product of the Boston Consulting Group + Itis a 2"2 matrix which helps in * ? the portfolio analysis of a business unit. + Ithelps to determine in which products to invest, expand & which to sell. Increasing Business Growth Rate Star ‘Question Mark Expand Improve or Divest Cash Cow Dog Harvest Divest Increasing Relative Market Share Relative Market share: The portion of a market controlled by a particular company or product. Relative Growth Rate: An increase in the number of people who buy a particular product or service, or the number of products. WANE hea iid4 Categories of the BCG Matrix Stars: High Market share Question Marks: Low Market Share High Growth High Growth These are market lea ding products Potential of becoming stars if the * & generate huge income. market share can be increased. Requires huge investments to retain their top position. Careful analysis is needed to determine whether to invest or not. Cash Cows: High Market share Dogs: Low Market Share Low Gro Require less investment to maintain existing market share. No further investment undertaken. wth, Low Growth Mostly won't generate large profit and may just break even. Mostly ought to divest, as they have a negative effect on overall profitability of company. should be WAVE Cenk a esdBCG Matrix of Amul Amul has diversified their offerings, * 9 entering into different milk and milk product markets, let us understand Shee and a BCG Matrix of Amul Ice cream Cash Cows: rr & The 3 products mentioned in the figure (milk, butter, cheese) Increasing Business Growth Rate Wilk Butter and | Cookies and generate steady, high revenue. Cheese Pizza They are the “flagship” products of the brand. Increasing Relative Market Share Stars: Question Marks: Dogs: Amul invests alot of cash mul Lassi falls under this Due to the heavy coming from cash cow into category, competition & limited star-product promotions. Considering the increasing innovation in these Amul Ice Creams have demand for healthy products, products, it’s difficult for targeted & appealing ads inthis category shows a huge _ Amul to gain market share order to improve awareness potential to grow. & generate huge revenue. WAVE Cenk a esdBCG Matrix of Amazon Increasing Business Growth Rate Us Kindle Rey anazzonprine FireTV Amazon Video Alexa Music <— — Increasing Relative Market Share SALE Cenk icra