BCG Matrix : Analysis and Strategy

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   The BCG (Boston Consulting Group) matrix provides a framework for analyzing products according to growth and market share. This Framework includes four categories that are, Stars, Question Marks, Cash Cows, and Dogs.




Stars: Stars have a large market share in a fast-growing industry. Due to the rapid growth of the market, this requires continuous investment.

 Question Marks: This business unit with a low market share in a high growth market. 

 Cash Cow: This business unit is with a large market share in a mature and slow-growing industry.

 Dogs: Dogs are the business with low market share and low market growth. These are weak in the market and difficult to make a profit.

 Five products that are mapped in the BCG Matrix :

Samsung

Stars:
  • Mobile phones, Tab and TV falls under Star category.
  • This holds a high market share in a high growth industry. 
  • To hold its position in the marketplace, Samsung launches new smartphones with new features and designs. 
  • For example, Samsung Galaxy and Note series are quite famous among customers because they are trustworthy.
  • Samsung experiments with new technologies and it is coming up with new TV's like LED and OLED TV.
Cash Cows: 
  • The other products like Washing Machine, AC's, Cooking Appliances and Refrigerators falls under Cash cow category.
  • Samsung stands for its quality and trust.
  • They hold a good market share in the industry.
Question mark:

  • Samsung Printer falls under Question mark category, which attains high competition and small market share. 
  • This industry is still in the phase of development.
Dogs:

  • Samsung Smartwatch can be placed under Dogs category.  
  • Samsung launched its Smartwatch but the product failed to achieve the success that it was expected to achieve.
  • These products are perceived to have the potential to grow but however fail due to the slow market growth.


TATA

 Stars: 
  • This category includes Tata Steel, Tata Motor, Tata Power and Tata hotels. So, the investments in this company should be increased.
Cash Cows:
  • Tata Tea and Tata Chemicals fall under this category because of the slow-growing industry.
Question mark:
  • Question mark category includes Tata Communications and Voltas.
  • This market has growth opportunities, but these products have not been able to take benefit of these opportunities in an effective manner.  

Marks and Spencer

 Stars:
  • Lingerie falls under this category. Marks and Spencer were known at a time when the choice was limited.
  •  Marks and Spencer lingerie is still the UK’s market leader with high growth and high market share.
Question mark:
  • This category includes food.
  • For years, Marks and Spencer refused to consider food and today they have over 400 Simply food stores across the Uk, which demonstrates high growth and low market share.
Cash Cows:
  • Classic range or clothing falls under this category.
  • The M&S Classic range has strong supporters which show growth and high market share.
Dogs:
  • A premium-priced range of men’s and women’s clothing and accessories, with low market share and low growth.
  • The premium pricing means that it makes a financial contribution to the company.
Nestle

Stars:
  • Nestle’s wide range of mineral water has benefited the healthier lifestyle trends and emerging markets.
  • These products require large amounts of investments.
Question mark:
  • These business units have a low market share of a high growth market.
  • Magi 2-minute Noodles currently require lots of investment which may not offer the highest return on investment in Nestle’s brand portfolio.
Dogs:

  • This category has a low market share in a low growth market.
  • Sports performance and nutrition brand are confirmed to be not invested.
  • This is because of poor sales in a saturated market. So, this classification may generate enough profit to be self-sufficient.
Cash Cows:

  • Cash Cows have a high share of a low growth market.
  • They require very little investment to generate revenue.

Coca-Cola 

Stars: 
  • Stars lead the business.
  • To maintain its large market, they need a large investment.
  • The star products of Coca-Cola are Pepsi, Thumps-up, Mazza 
Cash Cows: 
  • This generates more cash than they required.
  • They invest with little cash as possible which is profitable.
  • They are mainly located in matured industries.
Question mark: 
  • Many businesses start with this.
  • If the market share remains unchanged, they require a great amount of cash.
  • Investment should be high for Cats.
Dogs: 
  • Dogs are not capable of bringing much cash.
  • Diet Coke and Minute Maid are the products that fall under the Dogs category of Coca-Cola.
  • Coca-Cola Life has been launched with the aim of targeting the market that is seeking low-calorie soda. 


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