Planning Techniques Below is a description of two planning techniques. The first one is BCG matrix followed by SPACE matrix. BCG matrix This matrix’s name stands for Boston Consulting Group and it’s a framework, which is used as a planning tool that helps organisations evaluating the strategic position of the business’ brand portfolio and their potentials. It classifies business portfolio into four categories based on industry attractiveness and competitive position. The BCG matrix’s purpose is to help an organisations having better understanding about in which of their brands they should invest and in which they should not be investing or invest less. There are 4 categories of BCG matrix: dogs, cash cows, stars and question marks. Dogs- compared with competitors, they hold low market share and operate only in a slow growing market. Thus they are worthless in investing as they generate low cash returns. However in some cases dogs can be profitable for a long time term. Cash cows- these are the most profitable brands. According to growth/share matrix firm should not invest into growth of cash cows but only to support them to maintain market share. Cash cows can be large corporations that are being capable of producing new products that become stars. Stars- operate in high growth industries and maintain high market share. They are both cash generators and cash users. These are the primary users in which the company should invest in because they are expected to become
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
The All-Star Footwear executive team worked well together to create a high-performing corporation, which excelled in competing in the athletic shoe global market. Due to the strong execution of each member, we secured first place in the BSG simulation and learned about competitive analysis in the process.
A Cash Cow is a business unit within a portfolio that has a high market
A 5 year strategic plan for Mensa Inc. should be dynamic and focus on ensuring that the present situation where in multiple sectors and businesses are involved. Re investing and formulating a stronger BCG matrix with divestiture from loss making units becomes extremely essential. The BCG matrix is a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix.
Bacilos’ target audience in the US Latino market consist of males and females between the ages of 30-39 and 50+. Fans are spread across different FECI categories, however key segments fall mostly under Enthusiasts & Casuals.
CM conducted a 30 Day CFT meeting for Alexia Taylor (youth) at Daytop Treatment. In attendance were Jasmine Alexander (CM), Alexia (youth), Kelly Hennebry (Case Manager), Jaimie Coviello (Therapist) and Lisa Marshall (caregiver). CM completed initial Strengths & Needs Assessment and the crisis plan was reviewed.
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
The fashion designer clothing line BCBG stands for bon chic, bon genre. It is a French term that means good style, good attitude. Max Azria founded the line in 1989 and was inspired to bring European sophistication to American fashion. His line has now expanded to shoes, handbags, sunglasses, swimwear, jackets, fragrance, accessories and menswear. The label is high quality, affordable, classic and sophisticated. It is targeted toward women of all ages, shapes and personal styles. He carries everything from chic dresses to casual pants and tops. The ever growing and prosperous BCBG line is expected to be around for many years to come.
2. Kraft’s marketing strategy will benefit significantly from buying Cadbury in two different ways. Firstly, when we look at the brand portfolio of Kraft, which is the world’s second biggest food company. It is clear that there are plenty of old-timer cash cows, such as cheese, Nabisco and Suchard, but there are only very few rising stars. According to the Boston Matrix, cash cow means a product with a high share of a slow growth market, which can generate a stable
The BCG matrix portrays the perspective of the product portfolio, which is the growth-share matrix. This framework of tool categorizes products within a company's portfolio or within the business units as stars, cash cows, dogs, or question marks according to growth rate, market share, and positively or negative cash flow. By using positive cash flows a company can capitalize on growth opportunities. From this analysis, it can be seen that the products that is growing
The BCG Matrix composes organizations along two measurements—business development rate and market share. Business development rate relates to how quickly the whole business is expanding. Market share characterizes whether a specialty unit has a bigger or littler share than competitors.The question mark exists in another, quickly developing industry, however has just a little market share. The question mark status in the BCG matrix is dangerous: It could turn into a star, or it could come up short. ConocoPhillips has needed to carve its capital venture through the downturn, going from $17 billion in 2014, to $10 billion in 2015, at last arriving at $5 billion this year. “That’s the amount of transformation you had to make in this
Boston’s Matrix is a chart to evaluate a company’s market strategy and situation according to its relative market share and market growth rate (Kotler and Armstrong, 2012). It can be described as Figure 3.
Michael et Augustin has to depend on the quality of their product in order to get in to the market. Among the bigger players in the market, there’s less differentiation, but since the large players have much more resources comparatively, this situation creates a high entrance barrier for the company. In A Better Way to Map Brand Strategy (2015), Niraj Dawar and Charan K. Bagga talk about the centrality-distinctiveness map (Figure 1). Centrality is the recognition and strength of the brand, whereas distinctiveness is the premium qualities of the brands that are resembled upon the customers. There are four different types of brands according to the article, and they are presented in Figure 1 in a 2x2 matrix: unconventional, aspirational, peripheral, mainstream. For Michael et Augustin, centrality is a long shot target due to the established market. However, distinctiveness can be achievable. Therefore, the company has to pursue a strategy to create an unconventional brand, and then transition into the aspirational part.
Stars are units with a high market share in a fast-growing industry (High Market Share / High Market Growth). The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, if they have been able to maintain their category leadership stars become cash cows, else they become dogs due to low relative market share.
According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.