Application of Growth/Share

Matrix for four existing product

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HELL
I am Jannatun Nayeema,

O!
ID: 2181011123
These are my team members
and their ID respectively.
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▫ Noshin Mushtary 2181011041

▫ Sefatul Alam Supto 2181011077

▫ Shoeb Ahmed 2181011119

▫ Mohammad Ullah 2181011098

Introduction to Growth/Share Matrix
What is Growth/Share Matrix?

• The Boston Consulting Growth Matrix, also known as

Growth/Share Matrix, is a graphical tool, where the company’s
products and services can be plotted to help make key
business decisions.

• This matrix was created by Bruce D. Henderson for the Boston

Consulting Group in 1970.

• The y-axis of the graph represents rate of market growth while

the x-axis represents market share.
Understanding the Matrix
The chart or graph is divided into four categories.
Cash Cow: Low Market Growth and High Market Share 
• generate revenues in greater amounts than the investment required to
maintain their business
Dog: Low Market Growth and Low Market Share
• a smaller market share in a mature and slow-growing industry

Stars: High Market Growth and High Market Share 

• have a large market share in a fast-growing industry

Unknowns: High Market Growth and Low Market Share

• a smaller market share in a high-growth market
 Limitations of the Matrix
• does not take into account any other factors except market growth

• underlying assumption that the business units are operating in isolation

in relation to each other

• fails to take into account different situations such as a business unit that
is dominating a niche but is overall less dominant in the larger industry
Application of Growth/Share Matrix
There are 5 steps for the BCG matrix that are discussed concisely:

Step 1 – Choose the Unit

Step 2 – Define the Market 

Step 3 – Calculate Relative Market Share

 
Step 4 – Calculate Market Growth Rate 

Step 5 – Draw Circles on the Matrix 

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Example Pran-RFL Group:

Pran-RFL Group is one of the

largest conglomerates of
Bangladesh. This analysis
used the 2002 annual report
for its figures which can be
found here.
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 Star, e.g. Pran Ketchup: Market growth rate

is 15%;market share is 7.6%; highest export
Question mark, e.g. Pran Spice: Market
growth rate is 11%; market share is 0.6%
Cash cow, e.g. Pran Frooto: ± 2.26 % is
growth rate per year; 5.8% market share growth
per year
Dogs, e.g. Pran Energy Drink: Market share
is approximately 1%; growth rate is 2tk/ bottle
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THANK
YOU!
With this, we end our
Presentation here.
Thank you everyone for your
patience and support!