Essay on BCG Matrix

In this paper, Firm O will provide an analysis of how it’s product portfolio has developed and how their portfolio compares in relation to their competitors in the Sonite market using the BCG model as

Ansoff Matrix is formulated on the basis of four market factors that directly affect the business of the company. It helps the company to determine these four factors and formulate their market and business strategies that further help them to increase their product line and business in the market place. Therefore, it is important for Tesco to focus on Ansoff Matrix to increase their working effectiveness (Taylor, 2011). These factors include,

The Boston Matrix is a tool used by marketing managers to make decisions on which products within their portfolio that they should market and under what category on the

It is used to measure the position of a firm in relation to its relative market share as well as its market growth. Based on this the situation where in all of the given four divisions of the firm are at different levels of performance can be evaluated in order to formulate a 5 year strategy plan. This can help in the creation of a portfolio

The business portfolio analysis uses quantified performance measures and market growth to analyze a firm’s strategic business units as though they were a collection of separate investments. The BCG advises clients to locate the position of each of its SBUs on a growth share matrix. The vertical axis is the market growth rate, which is the annual rate of growth of the specific market or industry in which a given SBU is competing. The horizontal axis is the relative market share, defined as the sales of the SBU divided by the sales of the largest firm in the industry. Each of the quadrants are given a specific name and description based on the amount of cash they generate. Cash cows; are SBUs that typically generate large amounts of cash, far more than they can invest profitability in their own product line. They have a dominant share of slow-growth market and provide cash to pay large amounts of company overhead and to invest in other SBUs. Stars; are SBUs with a high share of high-growth markets that mat need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. Question marks or problem children; are SBUs with a low share of high growth markets. They require large injections of cash just to maintain their

Ansoff’s Matrix is a useful tool for analysing the approach to the marketing strategy of a business. The matrix puts markets against products and will suggest one of four marketing strategies for the business to follow.

In relation to the BCG matrix, one could argue that Amazon is a Star with a high market share and a high market growth rate.

Unit three journals were about the competitive advantage that with strategy creates value for the company and customers. It also talked about non-customers, which are people that have option when making a decision to purchase regardless of their situation. The product life cycle in unit three was about customer and a product. In different stages such as the product introduction, to the industry, growth, maturity, and decline customers and product were introduced of the competitive advantage. The Six Utility Levers learned in unit three that mapping is a great tool for buyers. Buyers can make sure that the purchase, delivery and the supplements of products maintained and disposed

In addition, it addresses both supply and demand side of the product market (Selwyn, 2011). The model attempts to highlight the processes, networks required and output of the product. According to Gereffi (1999), these networks refer to interconnection among four aspects. These aspects include labour force, production process, consumers, and involved states/countries. The model addresses the need of the customer in global market (Saranga, & Moser, 2010). However, it fails to consider the cost of production and distribution. These networks attract huge costs that make the whole process unsustainable and the model fails to state how firms can address this concern thus does not give strategic understanding of product market (Starosta,

The Nine –Cell industry attractiveness/business strength matrix graph will have the industry attractiveness on the vertical axis while the competitive strength is depicted on the horizontal axis; to the far left corner will be a large bubble representing U.S. grocery and the U.S. snacks, indicating that the U.S. Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength and thus warrants priority attention. In addition, the U.S. beverage, U.S. cheese and the U.S. convenient meals seem to huddle in the 3 diagonal cells stretching from the lower left to upper, indicating they merit intermediate attention by the Kraft incorporated. However, these segments of the company can be profitable if the company

BPS also has to address the optimal product development path for its new products, reexamine its marketing focus and company perception, reexamine its manufacturing integration processes, market pricing strategies

4. What does a 9-cell industry attractiveness/business strength matrix displaying Kraft Foods’ business units look like?

Third, the effects of the product life cycle, which is “Four distinct but not wholly-predictable stages every product goes through from its introduction to withdrawal from the market: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue

The focus of an organization is remain productive and relevant within the environment it resides. One way to accomplish this is by way of maintaining an active role in determining where, how, and why the finances are being utilized internally and externally. The Boston Consulting Group Matrix (BCGM) creates a visual representation for recognizing improvement possibilities, strengths, and issues requiring addressing.

Companies often use a (CPM) – Competitive Profile Matrix to better understand their external environment as well as their competition within the industry they operate. The matrix identifies a company’s key competitors and draws a comparison using the industry’s critical success factors. The analysis also reveals a company’s strengths and weaknesses against its competition, making them aware of problematic areas needing improvement and also areas that are doing well and need to be protected (See Appendix F).