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Summary Of The Bcg Matrix Of Cadbury

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The BCG (Boston Consultancy Group) Matrix in the 1970s with an overriding goal in mind, to help organizations differentiate between profitable and non-profitable ventures, developments and innovations. Companies with this knowledge about the market share and growth potential of their product helps the management make calculated investment decisions and provides reasonable facts persuading them to refrain from spending resources on products that are not likely to give favorable results. The BCG Matrix has allowed one to analyze the product portfolio of Cadbury and is presented below:
• Several companies today have certain products which are financially viable for the company and are the reason for the financial success of the company, and these products are regarded as cash cows. These high performing products have resulted in massive market share gains over the years for the company. Once the product reaches maturity, this is the products peak, and therefore further development and success of the product is now skating on thin ice. The cash cows benefit an organization as they provide companies with a continuous stream of sales and capital. The dairy milk line has been a cash cow for Cadbury in the past decades as there was a high demand for chocolate. Present day has seen the situation shift and dairy based sweets and chocolates have lost their place as a cash cow. Recently Cadbury has experienced stable financial growth through Bournvita brand which has created a better sales outlook for the company.

• Products that are referred to in the star category can be differentiated from the cash cows based on the growth potential of the industry and not necessarily the financial success, however, with that said, both do work hand in hand with one another. With or without a significant hold in market share, an industry is periodically growing and is therefore prone to further increases in sales and revenues from the star product. Consequently, to obtain the target of a higher market share, continued production of the star product must take place, which is supported by the high demand from consumers. How then, might one ask, does cash cows and star products complement one another? As star products develop

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