Case study on bcg matrix application

In case of electronic division, it is recommended that significant investments must be made with the aim of gaining some market share.

bcg matrix example

Although faced with accusations of perverse side-effects on the health of consumers and monopolistic practices by its producing company, Coca- Cola has remained a popular soft drink well into the first decade of the 21st century.

They are generally on their way out.

Bcg matrix example pepsi

Investment is needed to hold their share, building them into stars. Dogs do not have potential to bring in much cash. If managed well, Question Marks will grow rapidly and thus consume a large amount of cash investments. Such firms which may prove to be a potential danger especially in Information Technology industry are totally neglected by the BCG matrix. If Question Marks do not succeed in becoming a market leader, they might degenerate into Dogs when market growth declines after years of cash consumption. Cash Cows ultimately bring balance and stability to a portfolio. If you want to know more about HOW to spend these investments in order to grow a business unit, you might want to read more about the Ansoff Matrix. Haspeslagh Interpretation Before moving on to the actual case, it is better to understand the interpretation of each category as it would help in gaining deeper insight of the case. The main purpose of the BCG Matrix is therefore to make investment decisions on a corporate level. Star: In this tool, those products are classified as star which has high market growth and the product itself has high market share. Thus the BCG matrix is the best way for a business portfolio analysis. They generate more cash than required. They require heavy investment to maintain its large market share. BCG matrix relies on 2 dimensions: market growth and market share.

Mission Statement: Our Roadmap starts with our mission, which is enduring. Placing appropriate products in the BCG matrix, results in 4 categories, in the business portfolio of an industry. Although Coke has been the target of urban legends decrying the drink for its supposedly copious amounts of acid, or the "life-threatening" effects of its carbonated water but still it is the most in-style soft drink.

They have the potential to gain market share and become Stars market leaders eventually. It may not be the case. Differentiation, and 3.

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The extra cash generated out of it is usually used to protect market share and distributed to other products usually question marks to support their share.

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BCG Matrix Application Free Essays