Bcg Paper

1933 WordsJul 15, 20138 Pages
Strategic Management BCG Matrix Written by : Afringga Qurani A.S. (008201100114) Dery Apriani S. (008201100033) Firdausi Fananiar (008201100086) Mutmainnah Hauliyah (008201100120) Putri Azizah S. (008201100023) Rizqi Mulia Raya (008201100106) Lecturer : Mr. Irfan Habsjah Class : Accounting 2 President University Jababeka Education Park, Jalan Ki Hajar Dewantara, Cikarang – Bekasi 17550 BCG Matrix Definition of BCG Matrix Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA in 1970, to help corporations with analyzing their business units or product lines. This help the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic…show more content…
Once it becomes a star, it is profitable. • BCG Matrix is helpful for managers to evaluate the balance in the firm’s current portfolio of Stars, Cash Cows, Question Mark, and Dog. • BCG Matrix applicable to large companies • The model is simple and easy to understand • It provides a base for management to decide and prepare for future actions. Limitation of BCG Matrix The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. But BCG Matrix is not free from limitations, such as- 1. BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected. 2. Market is not clearly defined in this model. 3. High market share does not always leads to high profits. There are high costs also involved with high market share. 4. Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. 5. At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes. 6. This four-celled approach is considered as to be too simplistic. Implementation of BCG Matrix • PT Sony Indonesia PT Sony Indonesia conducts sales activities to consumers in Indonesia. Famous products of PT Sony Indonesia issued VAIO (notebook), PlayStation,
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