What companies use the BCG Matrix?
BCG Matrix (Growth Share Matrix): Definition, Examples
- Fanta, a Coca-Cola product, is one such example where the business units can be seen as a question mark.
- Coca-Cola is one such example of Cash Cows.
- Diet coke, a Coca-Cola product, is on such example of Dogs.
What is BCG Matrix of Nestle?
Boston Consulting group’s product portfolio matrix is designed to help with long term strategic planning, to help a business consider growth opportunities. This is done by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.
What is BCG Matrix with example?
We use Relative Market Share in a BCG matrix, comparing our product sales with the leading rival’s sales for the same product. For example, if your competitor’s market share in the automobile industry was 25% and your firm’s brand market share was 10% in the same year, your relative market share would be only 0.4.
Where does Pepsico fit in the BCG Matrix?
The products or business units that have a high market share in high growth industry are the stars of the organization. Ξ In the case of Pepsico, Pepsi falls in the Star quadrant of the BCG Matrix of Pepsi. Over the years, Pepsi has faced stiff competition from Coca-Cola and has also seen its market share take a hit.
How do companies use BCG matrix?
To use the BCG matrix, a company will review its portfolio of products or SBUs, then allocate them to one of four quadrants based on their market share, growth rate, cash generation and cash usage. This is then used to determine which products receive investment, and which are diversified from.
What is GE matrix with example?
The GE McKinsey Matrix, also know as the McKinsey Nine Box Matrix is a strategic tool used for business portfolio planning. As an example of a business portfolio, consider Hilton Hotels. The Hilton Hotels group is made up of many SBUs including Hilton Double Tree, Hilton, Conrad Hotels, and Waldorf Astoria Hotels.
What is BCG matrix in management?
BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share).
What is BCG in business?
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
How can a company use the BCG matrix?
Is PepsiCo a cash cow?
PepsiCo consists of 5 major brands: Gatorade, Quaker, Pepsi products, Frito-Lay and Tropicana. With regards to the PepsiCo, services that can be considered in the cash cows are the Quaker. Lastly, it can be seen that Tropicana, Gatorade and Frito-Lay are products that can be considered in the dogs’ category.
How does the BCG matrix help a company?
In the BCG matrix, market growth and market share of the products (or service) of a company are compared to each other. This allows a company to determine whether they should invest in a product or whether they should de-invest, or even stop the product altogether.
What are the Stars in the BCG matrix?
The stars in the BCG Matrix are products at the start of the product lifecycle. The growth and market share are high. Because the product is at the start of the product lifecycle, the margins are usually also high. A lot is being invested in marketing.
What makes a product a cash cow in the BCG matrix?
A product that can be classified as a cash cow in the BCG Matrix generally has a high market share, a reasonable margin, and limited growth or a slight decrease. The costs are low. The production line is largely recouped, and there is a limited investment in marketing. With cash cows it is important that you as a company optimize the profit.
How are SBUs allocated in the BCG matrix?
To use the BCG matrix, a company will review its portfolio of products or SBUs, then allocate them to one of four quadrants based on their market share, growth rate, cash generation and cash usage. This is then used to determine which products receive investment, and which are diversified from.