TOPIC 4

USING CORPORATE STRATEGIES TO

IMPLEMENT AND CONTROL ORGANIZATION
OBJECTIVES

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What is a Corporate Strategy?
A corporate strategy refers to a companywide strategy aligned with
the company’s vision and objectives, aiming to create value and
increase profit. It considers an organization’s overall nature,
ecosystem, and ambition. It aligns with the optimum utilization and
allocation of resources.
It can work as a blueprint for the whole organization to minimize risk
and maximize the growth and expansion of the organization by
bringing effective administration, management, and centralization of
business operations. Furthermore, it aims to attain long-term growth
by gaining competitive advantages.

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Types of Corporate Strategies
1. Stability Strategy

Involves Strategy to maintain the current market share and position

by continuing to serve in the same industry with the same product
line and services.
It occurs when a company performs fairly and reasonably well in its
sector and chooses to gain stability.
The main objective of organizations through such strategies is to gain
perpetual growth and improved performance in the long run.
It is common because it is less risky and inexpensive as no new or
out-of-box planning needs to be executed.
It gives importance to sustainable and modest growth.

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Types of Corporate Strategies Cont….
2. Expansion Strategy

The strategies focus on entering new markets, innovating and

introducing new products and services, etc.
Methods include expansion through concentration, diversification,
integration, cooperation, and internationalization.
It aims to expand market share, obtain increased profit, and achieve
faster growth.
It helps companies dominate the market, withstand competition, gain
competitive advantages, and in certain market conditions, expansion
strategies help companies survive.
It benefits society through innovation.
It is highly rewarding and adds value to the company.
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Types of Corporate Strategies Cont….
3. Retrenchment Strategy / Renewal Strategy
It is the opposite of an expansion strategy. It helps reduce the loss
made by restructuring the strategies, cutting off loss-making divisions
or businesses, etc.
The main types of retrenchment strategies are
1. Turnaround Strategy/ Renewal Strategy: Turnaround is a
restructuring process that converts the loss-making company into a
profitable one
2. Divestment Strategy: Divestment involves a company selling off a
portion of its assets
3. Liquidation Strategy: selling off its assets and the final closure or
winding up of the business operations
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Types of Corporate Strategies Cont….
4. Combination Strategy

Another important type of corporate strategy is the combination

strategy.
 It occurs when a company combines other strategies instead of
focusing on a single strategy.
It is common with entities like Multinational corporations or
companies (MNCs) and other large organizations. When the different
business units or divisions perform different activities, the parent
entity will utilize different strategies for the units.
Example: The acquisition of Instagram by Facebook in 2012 for $1
billion exemplifies a form of Expansion Strategy using horizontal
integration. It was an important corporate strategy for Facebook since
it successfully erased one of the market competitions
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 Using Corporate strategies
for Single and Multi-
business

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Corporate strategies for Single and Multi-
business
Corporate Strategies are is used by all organizations, whether they are
large corporations or businesses, small businesses, entrepreneurial
ventures, or not-for-profit organizations.
For this lesson, the focus is on a comparison of the strategy
implementation for single business organizations versus multiple
business organization.
A single business organization operates in a single industry whereas the
multiple business organization operates across industries with products
or services in two or more

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Corporate strategies for Single and Multi-
business cont
When considering a strategic initiative for a single business, there is a
lot of research and analysis that must be completed prior to
implementing any strategy.
Strategy development and implementation require the cooperation
of the different departments within an organization. The level of
difficulty in achieving this will depend on the size, scope, and
locations of the employees in the organization.
An internal and external environmental analysis has to be completed
to determine the current and emerging trends within the industry and
the region so that strategies can be formulated that will help the
organization achieve or maintain a competitive advantage.
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Corporate strategies for Single and Multi-
business cont.
Threats to the industry and external environment must be monitored
to ensure the effect on the organization is minimal

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 Steps for Implementing
Corporate strategies for
Single and Multi-business

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Steps for Implementing Corporate
strategies for Single and Multi-business
Corporate Strategy implementation is the process of turning plans
into action to reach the desired outcome. Essentially, it’s the art of
getting stuff done.
The success of every organization rests on its capacity to implement
decisions and execute key processes efficiently, effectively, and
consistently. But how do you ensure that implementing a Corporate
strategy will be successful?
Harvard Business School Professor David Garvin says successfully
implementing and executing strategy involves “delivering what’s
planned or promised on time, on budget, at quality, and with
minimum variability—even in the face of unexpected events
andcontingencies."
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Steps cont….
1. Set Clear Goals and Define Key Variables
Goals should be attainable. Setting goals that aren’t realistic can lead
you and your team to feel overwhelmed, uninspired, deflated, and
potentially burnt out.
To avoid unintentionally causing low morale, review the outcomes
and performances, both the successes and failures of previous change
initiatives to determine what’s realistic given your timeframe and
resources. Use this past experience to define what success looks like.
Another important aspect of goal setting is to account for variables
that may hinder your team’s ability to reach them and to lay out
contingency plans.
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Steps cont….
2. Determine Roles, Responsibilities, and Relationships
Once you’ve determined the goals you’re working toward and the
variables that might get in your way, you should build a roadmap for
achieving those goals, set expectations among your team, and clearly
communicate your implementation plan, so there’s no confusion.

In this phase, it can be helpful to document all of the resources

available, including the employees, teams, and departments that will
be involved. Outline a clear picture of what each resource is
responsible for achieving, and establish a communication process that
everyone should adhere to.
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Steps cont….
3. Delegate the Work
Once you know what needs to be done to ensure success, determine
who needs to do what and when. Refer to your original timeline and
goal list, and delegate tasks to the appropriate team members.

You should explain the big picture to your team so they understand the
company's vision and make sure everyone knows their specific
responsibilities. Also, set deadlines to avoid overwhelming individuals.
Remember that your job as a manager is to achieve goals and keep
your team on-task, so try to avoid the urge to micromanage.

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Steps cont….
4. Execute the Plan, Monitor Progress and Performance, and Provide
Continued Support
Next, you’ll need to put the plan into action. One of the most difficult
skills to learn as a manager is how to guide and support employees
effectively. While your focus will likely be on delegation much of the
time, it’s important to make yourself available to answer questions your
employees might have, or address challenges and roadblocks they may
be experiencing.

Check in with your team regularly about their progress and listen to
their feedback.
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Steps cont….
5. Take Corrective Action (Adjust or Revise, as Necessary)
Implementation is an iterative process, so the work doesn’t stop as
soon as you think you’ve reached your goal. Processes can change mid-
course, and unforeseen issues or challenges can arise. Sometimes, your
original goals will need to shift as the nature of the project itself
changes.

It’s more important to be attentive, flexible, and willing to change or

readjust plans as you oversee implementation than it is to blindly
adhere to your original goals.

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Steps cont….
6. Get Closure on the Project, and Agreement on the Output
Everyone on the team should agree on what the final product should
look like based on the goals set at the beginning. When you’ve
successfully implemented your strategy, check in with each team
member and department to make sure they have everything they need
to finish the job and feel like their work is complete.

You’ll need to report to your management team, so gather information,

details, and results from your employees, so that you can paint an
accurate picture to leadership.

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Steps cont….
7. Conduct a Retrospective or Review of How the Process Went
Once your strategy has been fully implemented, look back on the
process and evaluate how things went.
Ask yourself questions like.
i. Did we achieve our goals?
ii. If not, why?
iii. What steps are required to get us to those goals?
iv. What roadblocks or challenges emerged over the course of the
project that could have been anticipated?

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Steps cont….
7. Conduct a Retrospective or Review of How the Process Went cont…

v. How can we avoid these challenges in the future?

vi. In general, what lessons can we learn from the process?

While failure is never the goal, an unsuccessful or flawed strategy

implementation can prove a valuable learning experience for an
organization, so long as time is taken to understand what went wrong
and why.
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 GROWTH STRATEGIES
AND THEIR TYPES

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Growth strategies and their types
Basically, there are two types of growth strategies
Type One: Internal Growth Strategies
1. Intensive Growth Strategies:
2. Integrative Growth Strategies
3. Diversification Growth Strategies
Type Two: External Growth Strategies
4. Merger:
5. Takeover:
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 Type One.
Internal Growth Strategies

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 1. Intensive Growth Strategies:

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1. Intensive Growth Strategies:
The firm pursues intensive growth strategies with the
objective to achieve further growth of existing products
and/or existing markets.
The basic classification of intensive growth strategies:
(a) Market penetration strategy
(b) Market development strategy
(c) Product development strategy
These strategies are also called ‘organic growth strategies

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The basic classification of intensive growth
strategies
(a) Market Penetration Strategy:
A firm pursuing market penetration strategy directs its
resources to the profitable growth of existing products in
current markets. It is the most common form of intensive
growth strategy.
The firm try to increase market share for present products in
current markets through increase of marketing efforts like
increase of sales promotion and advertising expenditure,
appointment of skilled sales force, proper customer support
and after sales service etc.
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The basic classification of intensive growth
strategies
(a) Market Penetration Strategy cont…..
The variants of Market Penetration strategies are:
i. Increase sales to current customers by habituating existing
customers to use more.
ii. Pull customers from the competitors’ products to
company’s products maintaining existing customers intact.
iii. Convert non-users of a product into users of the product
and making potential opportunity for increasing sales.
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The basic classification of intensive growth
strategies
(b) Market Development Strategy:
This strategy involves introducing present products or services
into new geographic areas.
The marketing efforts are made on existing products, to
customers in related market areas, by adding different
channels of distribution or by changing the current content of
the advertising and promotional efforts.

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The basic classification of intensive growth
strategies
(b) Market Development Strategy cont…..
The market development can be achieved in any of the
following ways:
i. By adding new distribution channels to expand the
consumer reach of the product.
ii. By entering new market segments.
iii. By entering new geographical markets.
In market development strategy, a firm seeks to increase the
sales by taking its product into new markets.
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The basic classification of intensive growth
strategies
(c) Product Development Strategy:
This strategy involves the growth of the market through
substantial modification of existing products or the creation
of new but related products that can be marketed to current
customers through established channels.
The variants of this strategy are:
i. Expand sales by developing new products.
ii. Create different quality versions of the product.
iii. Develop additional models and sizes of the product to suit the varied
preference of the customers.
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 2. Integrative Growth Strategies

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Type Two. Integrative Growth Strategies:

The integrative growth strategies are designed to achieve an

increase in sales, assets, and profits.
There are basically two variants in an integrative growth
strategy which involve:
a) Horizontal integration: Integration at the same level or
stage of business in the same industry
b) vertical integration: Integration of different levels/stages of
business in the same industry i.e. with backward and forward
linkages.
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Variants of an Integrative Growth Strategies

(a) Horizontal Integration:

When two or more firms dealing in similar lines of activity
A firm is said to follow horizontal integration if it acquires or
starts another firm that produce the same type of products
with similar production process/marketing practices.
When the combination of two or more business units
(existing and created) results in greater effectiveness and
efficiency than the total yielded by those businesses, when
they were operated separately, the synergy has been attained.
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 The reasons for Horizontal Integration are as follows:

i. Elimination or reduction in the intensity of competition.

ii. Putting an end to the practice of price cutting.
iii. Achieve economics of scale in production.
iv. Common pool of resources for research and development.
v. Use of common distribution channels and uniform brand
name.

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The reasons for Horizontal Integration Cont….

vi. Fixation of common price.

vii. Effective management of capacity imbalances
viii.Common advertising and sales promotion.
ix. Making common purchases at low prices.
x. Reduction in the overall cost of operations per unit.
xi. Greater leverage to deal with customers and suppliers.

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The reasons for Horizontal Integration Cont….

Generally, Horizontal Integration will increase the

monopolistic tendency in the market.
Less number of players in the industry will lead to collusion to
reap abnormal profits by setting the price of finished products
at a higher level than the market-determined price.

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(b) Vertical Integration:
Vertical integration refers to the integration of firms in successive stages in the
same industry.
The integration of different levels/stages of the industry is known as vertical
integration.
Vertical integration may be either backward integration or forward integration.
i. Backward Integration:
Vertical integration is one in which the company expands backward by
diversification into supplying raw materials. This allows for a smooth flow of
production, reduced inventory, reduction in operating costs, increase in
economies of scale, elimination of bottlenecks, lower buying cost of materials
etc.
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(b) Vertical Integration:
i. Backward Integration cont…
It is a diversification engaged at different stages of the production cycle within the
same industry. Firms adopting this strategy can have a regular and uninterrupted
supply of raw materials components and other inputs and the quality is also assured
ii. Forward Integration:
Here the firm expands forward in the direction of the ultimate consumer. For
example- a cement manufacturing company undertakes the civil construction
activity; it will be a case of diversification with forward linkage. With forward
integration, firms can acquire greater control over sales, distribution channels,
prices, and can improve its competitive position through differentiation and
customer support.

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 3. Diversification Growth
Strategies:

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3. Diversification Growth Strategies:

Diversification means going into an operation which is either totally or

partially unrelated to the present operations.
Before opting for diversification, the following basic questions must be
seriously considered:
Whether it brings a positive synergy, to the company?
Whether the market wants the new product or service which we
offer?
Whether the product or service has a good growth potential?

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 Type Two:
External Growth Strategies

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1. Merger
Merger is defined as ‘a transaction involving two or more
companies in the exchange of securities and only one company
survives.
When the shareholders of more than one company, usually two,
decides to pool the resources of the companies under a common
entity it is called ‘merger.
 If as a result of a merger, a new company comes into existence it is
called as ‘amalgamation’. As a result of a merger, one company
survives and others lose their independent entity, it is called
‘absorption’.
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Motives/reasons for Merger
The merger activities are as a result of following factors and
strategies, which are classified under three heads:
i. Strategic motives: when one finds that they can not move
ahead while alone,
ii. Financial motives – At a time when a company finds that it
can not afford to cater for cost of running a business or
adopt new technology or opportunity for sustainability
iii. Organizational motives. When a company sees potentials in
the skills of the other they may decide to join up their hands
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2. Takeover
Takeover may be defined as ‘a transaction or series of transactions
whereby an individual or group of individuals or company acquires
control over the management of the company by acquiring equity
shares carrying majority voting power’. Takeover is an acquisition
of shares carrying voting rights in a company with a view to gaining
control over the assets and management of the company.
A takeover generally involves the acquisition of a certain block of
equity capital of a company which enables the acquirer to exercise
control over the affairs of the company. The main objective of
takeover bid is to obtain legal control of the company. The
company taken over remains in existence as a separate entity
unless a merger takes place.
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2. Takeover cont….
The element of willingness on the part of the buyer and
seller distinguishes an acquisition from a takeover. If there
exists willingness of the company being acquired, it is known
as ‘acquisition’. If the willingness is absent, it is known as
‘takeover’.
In theory, the acquirer must buy more than 50% of the paid-
up equity of the acquired company to enjoy complete
control. But in practice, however effective control maybe
exercised with a smaller shareholding, because the
remaining sharehold¬ers scattered and ill-organized are not
likely to challenge the control of acquirer.
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 Types of Takeover

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i. Friendly Takeovers
In a friendly takeover, the acquirer will purchase the
controlling shares after thorough negotiations and
agreement with the seller. The consideration is decided by
having friendly negotiations. The takeover bid is finalized
with the consent of majority shareholders of the target
company.
This form of purchase is also called as ‘consent takeover’. In
a friendly takeover, the acquirer first approaches the
promoters/management of the target company for
negotiating and acquiring shares. Friendly takeover is for
mutual advantage of acquirer and acquired companies.
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ii. Hostile Takeovers
The hostile takeover is against the wishes to the target
company management. Acquirer makes a direct offer to the
shareholders of the target company without the prior
consent of the existing promoter/management.
That means person seeking control over a company,
purchases the required number of shares from non-
controlling shareholders in the open market. This method
normally involves purchasing of small holding of small
shareholders over a period of time at various places. As a
strategy the purchaser keeps his identity a secret. These
takeovers are also referred to as violent takeovers.
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iii. Bailout Takeovers
This entails an act of giving financial assistance to a failing
business or economy to save it from collapse.
These forms of the takeover are resorted to help the sick
companies, it allows the company to rehabilitate as per the
schemes approved by the financial institutions.
The lead financial institution will evaluate the bids received
for acquisition, the financial position and the track record of
the acquirer.

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iv. Tender Offer

In a tender offer, one firm offers to buy the outstanding stock of the
other firm at a specific price and communicates this offer in
advertisements and mailings to stockholders. By doing so, it bypasses
the incumbent management and board of directors of the target firm.
Consequently, tender offers are used to carry out hostile takeovers.
The acquired firm will continue to exist as long as there are minority
stockholders who refuse the tender. From a practical standpoint,
however, most tender offers eventually become mergers, if the
acquiring firm is successful in gaining control of the target firm.

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v. Purchase of Assets:

In a purchase of assets, one firm acquires the assets of

another, though a formal vote by the shareholders of the firm
being acquired is still needed.

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vi. Management Buyout:

In this form, a firm is acquired by its own management or by

a group of investors, usually with a tender offer. After this
transaction, the acquired firm can cease to exist as a
publicly traded firm and become a private business.

These acquisitions are called ‘management buyouts’, if

managers are involved, and ‘leveraged buyouts’, if the funds
for the tender offer come predominantly from debt.

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3. Joint venture
All joint ventures are typically characterized by two or more ventures
being bound by a contractual arrangement which establishes joint
control. Activities, which have no contractual arrangements to establish
joint control, are not joint ventures. The contractual arrangements
establish joint control over the joint venturers.
is a form of business combination in which two unaffiliated business
firms contribute financial and/or physical assets, as well as personnel,
to a new company formed to engage in some economic activity, such as
the production or marketing of a product. Joint venture can be formed
between a domestic company and foreign enterprise in order to flow
the skills and knowledge both the ways.
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3. Joint venture cont…
A joint venture by a domestic company with multinational company
can allow the transfer of technology and reaching of global market.
The partners in joint venture will provide risk capital, technology,
patent, trade mark, brand names and allow both the partners to reap
benefit to agreed share.
Joint ventures with multinational companies contribute to the
expansion of production capacity, transfer of technology and capital
and above all penetrating into global market. Entering into a Joint
venture is a part of strategic business policy to diversity and enter into
new markets, acquire finance, technology, patent and brand names.

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Forms of Joint Venture
i. Jointly Controlled Operations:
The operation of some joint ventures involves the use of the assets and
other resources of the venturers rather than the establishment of a
corporation, partnership, or other entity or a financial structure that is
separate from the venturers themselves.
ii. Jointly Cent Rolled Assets:
• Some joint ventures involve the joint control, and often the joint
ownership, by the venturers of one or more assets contributed to, or
acquired for the purpose of, the joint venture and dedicated to the
purposes of the joint venture.
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Forms of Joint Venture Cont…
iii. Jointly Controlled Entities:
A jointly controlled entity is a joint venture, which involves the
establishment of a corporation, partnership or other entity in which
each venturer has an interest.

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 4. Strategic Alliances

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Introduction
Strategic alliance is an arrangement or agreement under which two or
more firms cooperate in order to achieve certain commercial
objectives. The motives behind strategic alliances are to reduce cost,
technology sharing, product development, market access, availability of
capital, risk sharing etc.
The basic objective is to facilitate transfer of technology while
implementing large objectives. The resultant benefits are shared in
proportion to the contribution made by each party in achieving the
targets. In strategic alliance, two or more firms that unite to pursue a
set of agreed upon goals; remain independent subsequent to the
formation of an alliance.
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Intro cont…
A strategic alliance integrates the synergetic talents of
alliance partners. Mutual understanding and trust are the
basic tenets of strategic alliances. For smooth functioning of
an alliance, partners are required to have preset priorities
and expectations from each other.
 This strategy seeks to enhance the long-term competitive
advantage of the firm by forming alliances with its
competitors existing or potential in critical areas instead of
competing with others.
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 5. Franchising:

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5. Franchising
Franchising provides an immediate access to business operations and
technology in profitable fields of operations. It is an important means of
doing business in several countries and represents an effective
combination of the advantages of large business with the motivation
and adaptation capabilities of small or medium scale enterprises.
It also enables linkages of large and small businesses within a
framework of vertical division of labour. The concept of franchising is
quite comprehensive and covers an extensive range of marketing and
distribution arrangements for goods and services. Franchises are
becoming a key mechanism for technological, marketing and service
linkages between enterprises within a country as well as globally.
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5. Franchising
A franchise is a chain retail company in which an individual or
group buyer pays for the right to manage company branches on
the company's behalf. Franchises occur most commonly in North
America, but they exist globally and offer businesses the
opportunity to expand overseas.
 Franchising typically requires strong brand recognition, as
consumers in your target market should know what you offer and
have a desire to purchase it.
For well-known brands, franchising offers companies a way to earn
a profit while taking an indirect management approach
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 6. Licensing Agreement

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6. Licensing Agreement
Licensing occurs when one company transfers the right to use or sell
a product to another company. A company may choose this method if
it has a product that's in demand and the company to which it plans
to license the product has a large market.
 For example, a movie production company may sell a school supply
company the right to use images of movie characters on backpacks,
lunchboxes and notebooks
Generally, a licensing agreement is a commercial contract whereby
the licenser gives something of value to the licensee in exchange of
certain performance and payments.

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The licenser may provide any of the
following
i. Rights to produce a potential product or use a potential production
process
ii. Manufacturing know-how (unpatented)
iii. Technical advice and assistance
iv. Right to use a trademark, brand etc.
v. The licenser receives a royalty.
vi. The licensee may eventually become a competitor.
vii. Results in improved supply of essential materials, components,
plants etc.
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 Portfolio Analysis by using-
BCG Matrix

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What is a BCG matrix

A BCG matrix is a model used to analyze a business’s products to aid with

long-term strategic planning. The matrix helps companies identify new
growth opportunities and decide how they should invest for the future.
The BCG matrix gives the business a framework for evaluating the
success of each product to help the company determine which ones they
should invest more money into and which they should eliminate
altogether. It can also help companies identify a new product to
introduce to the market is by using-BCG Matrix
The matrix is divided into four quadrants based on market growth and
relative market share as follows

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2/23/23 07:07 AM 68
Stars Quadrant
The business units or products with the best market share and
generating the most cash are considered Stars. Monopolies and first-
to-market products are frequently termed Stars too. However,
because of their high growth rate, Stars consume large amounts of
cash.
This generally results in the same amount of money coming in that is
going out. Stars can eventually become Cash Cows if they sustain their
success until a time when a high-growth market slows down. A key
tenet of a BCG strategy for growth is to invest in Stars

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Cash Cows quadrant
A Cash Cow is a market leader that generates more cash than it
consumes. Cash Cows are business units or products with a high
market share but low growth prospects.
Cash Cows provide the cash required to turn a Question Mark into a
market leader, cover the administrative costs of the company, fund
research and development, service the corporate debt, and pay
dividends to shareholders. Companies are advised to invest in cash
cows to maintain the current level of productivity or to “milk” the
gains passively.

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Dogs Quadrant
Dogs, sometimes also referred to as Pets, are units or
products with a low market share and low growth rates.
They frequently break even, neither earning nor consuming
much cash.
Dogs are generally considered cash traps because
businesses have money tied up in them, even though they
bring back almost nothing in return. These business units are
prime candidates for divestiture

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Question Marks quadrant
These parts of a business have high growth prospects but a
low market share. They consume a lot of cash but bring little
in return. Question Marks lose the company money.

However, since these business units are growing rapidly,

they have the potential to turn into Stars in a high-growth
market. Companies are advised to invest in Question Marks if
the products have the potential for growth or to sell if they
do not.
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Using the BCG matrix to strategize or
evaluate strategies
Once you know where each product stands, you can
evaluate them objectively and strategize the future of your
business.
The BCG matrix helps you identify which products you
should prioritize and which need to be cut altogether.

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Four ways to use the BCG matrix to
strategize for your business
i. If your goal is to focus on innovation, increase your investment in Stars
and Question Marks. For example, you may be able to push a Question
Mark into a Star and, later, a Cash Cow, by investing more in it.
ii. If you can’t invest more into a product, keep it in the same quadrant
and leave it alone. One of the advantages of a Cash Cow is that it’s a
well-established product that takes less effort to maintain.
iii. Reduce your investment and take out the maximum cash flow from a
product, which increases its overall profitability. This strategy is best
used for Cash Cows.
iv. Divest the amount of money invested in a product and apply it
elsewhere. This strategy is best for Dogs.
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The Role of Cash Flow in the BCG Matrix
Understanding cash flow is key to making the most of the BCG matrix. In
1968, BCG founder Bruce Henderson noted that four rules should guide
your approach to producing cash flow strategies:
i. Margin and cash generated are a function of market share. High
margins and high market share go together.
ii. To grow, you need to invest in your assets. The added cash required to
hold shares is a function of growth rates.
iii. High market share must be earned or bought. Buying market share
requires an additional increment or investment.
iv. No product market can grow indefinitely. You need to get your payoff
from growth when the growth slows – you lose your opportunity if you
hesitate. The payoff is cash that cannot be reinvested in that product
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The Leal-Life BCG Matrix Example

To ensure you understand a BCG analysis, it can be worthwhile to look at a

real-life BCG matrix example. A famous BCG matrix example is that of The
Coca-Cola Company, which owns many more drink lines than just its titular
brand.
In the Coca-Cola BCG matrix example, Diet Coke and Minute Maid are
Question Marks, as these products attract a modest audience, but still have
room to grow. Its bottled water brands Kinley and Dasani are Stars since they
dominate the market in, respectively, Europe and the U.S., and show no signs
of slowing growth. Its titular drink is a Cash Cow since it experiences low
growth and a high market share. However, Coca-Cola is also a Dog because
legislation against soft drinks – not to mention public sentiment turning
against them – has decreased soda sales.
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