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BCG Matrix M&P

The document analyzes M&P using the BCG matrix and SWOT analysis. The BCG matrix identifies e-commerce and healthcare as stars, logistics as a dog, and telecom/ICT and financial services as question marks. It recommends investing in stars, divesting dogs, and thoroughly evaluating question marks. The SWOT analysis identifies M&P's strengths in distribution network, reputation, and finances, and weaknesses in technology, innovation, and customer service. It suggests opportunities in new sectors and partnerships, and threats from political instability, theft, and regulatory changes.

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0% found this document useful (0 votes)
146 views

BCG Matrix M&P

The document analyzes M&P using the BCG matrix and SWOT analysis. The BCG matrix identifies e-commerce and healthcare as stars, logistics as a dog, and telecom/ICT and financial services as question marks. It recommends investing in stars, divesting dogs, and thoroughly evaluating question marks. The SWOT analysis identifies M&P's strengths in distribution network, reputation, and finances, and weaknesses in technology, innovation, and customer service. It suggests opportunities in new sectors and partnerships, and threats from political instability, theft, and regulatory changes.

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user xx
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BCG Matrix:

BCG MATRIX HIGH RELATIVE LOW RELATIVE


MARKET SHARE MARKET SHARE
HIGH MARKET STAR: QUESTION MARK:
GROWTH RATE ● E-commerce ● Telecom & ICT
● Financial Services
● Healthcare
LOW MARKET CASH COWS: DOGS:
GROWTH RATE ● Pharmaceuticals ● Logistics
● Consumer

Strategies Proposed:

Stars: E-commerce and Healthcare are possible Stars for M&P, as they are growing sectors in
Pakistan, with high demand and potential. M&P has a strong presence and reputation in these
sectors, with its online platforms such as APPTAK and Health Solutions, and its partnerships with
various local and international suppliers and customers. Muller & Phipps should leverage its position
in the E-commerce and Healthcare sectors by investing in cutting-edge technology for its online
platforms, such as APPTAK and Health Solutions. Strategic partnerships with international suppliers
and an intensified focus on marketing will enhance brand visibility. Additionally, investments in
customer service will fortify relationships, and geographic expansion will capture new markets.

Dogs: Logistics is a Dog for M&P, as it is a saturated and competitive sector in Pakistan, with low
growth and low margins. M&P has a weak presence and reputation in this sector, with its logistics
and cold chain services, and its partnerships with various local and international suppliers and
customers. Given the challenging landscape of the Logistics sector in Pakistan, M&P should consider
divesting or liquidating this business. Freed resources and capital can then be strategically redirected
toward more lucrative and growth-oriented ventures. Exploring strategic partnerships with other
logistics providers may optimize existing assets.

Question Mark: Telecom & ICT and Financial Services are Question Marks for M&P, as they are
dynamic and competitive sectors in Pakistan, with high opportunities and challenges. M&P has a
moderate presence and reputation in these sectors, with its services such as sales, after-sales
support, marketing, and information technology, and its partnerships with various local and
international suppliers and customers. M&P should conduct a thorough evaluation of the Telecom &
ICT and Financial Services sectors. Investment decisions should be based on a detailed analysis of
potential and feasibility. If viable, strategic investments in technology, marketing, and services can
improve market share and overall performance. Collaborations with key players and strategic
partnerships will be essential to navigate the dynamic and competitive nature of these sectors.

Cash Cows: Pharmaceuticals and Consumers are possible Cash Cows for M&P, as they are established
and dominant sectors in Pakistan, with low growth and high demand. M&P has a strong presence
and reputation in these sectors, with its distribution network and logistics services, and its
partnerships with various local and international suppliers and customers. To maintain and optimize
the efficiency of these established sectors, M&P should focus on continuous optimization of its
distribution network and logistics services within Pharmaceuticals. Innovations in the pharmaceutical
sector will be crucial to staying ahead of market trends. Simultaneously, strategic diversification
within the Consumers sector should be explored to identify new revenue streams. Leveraging
existing partnerships, M&P can expand these businesses globally.

SWOT Matrix:

Strengths Weaknesses Opportunities


1. M&P is one of the 1. Technology is not 1. The advancement in
largest distributors updated enough in Information Technology
with a capacity of terms of pharma will support the
reaching 1300 products because globalization of M&P.
locations across those products need a 2. Growth of E-commerce.
Pakistan. specified level of According to a source TCS
2. Its diversity in vehicles temperature. owes 100 million to e-
is one of its strong 2. M&P has a high commerce vendors so
points containing 93+ dependency on its many vendors are not
vans and 737 aircraft international suppliers satisfied with this
and it also has tracker and partners, which situation so they have
equipped vehicles. could expose it to risks switched to other courier
3. They have strong of supply chain services like M&P
financial sites. This disruptions, currency couriers. This can
makes them overcome fluctuations, and diversify M&P’s revenue
economic crises. geopolitical streams.
4. Their logistic services uncertainties. 3. Growing demand for
are strong making 3. Low level of healthcare, e-commerce,
sure that they meet innovation and and logistics services in
the needs of their differentiation, as it Pakistan, especially in the
customers. mainly relies on its wake of the COVID-19
5. Their workforce is also existing products and pandemic.
considered as one of services, rather than 4. New segments and
the strengths. They developing new ones. niches, such as renewable
provide the best 4. Some employees have energy, biotechnology,
training and a good expressed concerns and digital
environment for their about the work transformation, to
employees to make environment and diversify its revenue
them motivated so culture at M&P. streams and enhance its
they put in more hard 5. There have been competitiveness.
work and complete complaints about the 5. Investment on human
their tasks efficiently company’s customer capital, by providing
and effectively. Their service, particularly in training, development,
drivers are trained by relation to its delivery and incentives, to
the motorway police. times. improve its productivity,
6. They also offer cold 6. Customers have efficiency, and quality.
chain services which reported issues with
Improve the quality of the tracking system
their products, in this provided by M&P’s
way they maintain the delivery service.
refrigeration of items
such as fruits,
vegetables, and
vaccines.
7. Their broad range of
products attracts
customers. For
example, their website
‘App Tak’ offers a great
variety of products
such as household
items, Groceries,
Personal care,
Beverages, Smart
Devices, etc. This
results in a strong
market share and a
high-profit margin.
8. Association with Getz
Group, an
international
marketing and
distribution company,
enhances M&P’s
overall
competitiveness.

Threats SO Strategies WO Strategies


1. Political instability can 1. M&P can use its strong 1. M&P can update its
be a threat to M&P as financial position to technology in terms of
their deliveries might invest in its IT system, pharma products, by
get late due to which will enable it to investing in more
hundreds and improve its advanced and reliable
thousands of people operational efficiency, temperature control
protesting and rioting customer service, data systems, which will
on the streets. analysis, and online ensure the quality and
2. Theft while presence. This will also safety of its products.
commutation of goods support its This will also support
within cities can be a globalization strategy, its globalization
major threat for the as it will be able to strategy. (W1, O1)
company due to lack connect with its 2. M&P can reduce its
of security. international partners dependency on its
3. Regulatory challenges and customers more international suppliers
and policy changes, effectively. (S3, O1) and partners, by
such as taxation, 2. M&P can leverage its exploring new
import duties, price diverse and tracker- segments and niches,
controls, and quality equipped vehicles to such as renewable
standards, that could offer reliable and energy, biotechnology,
affect its profitability timely delivery and digital
and operations. services to e- transformation, where
4. Corruption, poverty, commerce vendors, it can develop its
pollution, and climate who are looking for products and services,
change issues. alternatives to TCS. rather than relying on
5. Intense competition This will help M&P to imports. (W2, O4)
from other distribution diversify its revenue 3. M&P can increase its
companies in Pakistan, streams and increase level of innovation and
such as IBL, Searle, and its market share in the differentiation, by
Martin Dow. e-commerce sector. capitalizing on the
(S2, O2) growing demand for
3. M&P can leverage its healthcare, e-
association with The commerce, and
Getz Group to expand logistics services in
into regional and Pakistan, especially in
global markets, where the wake of the
it can offer its COVID-19 pandemic,
distribution and by offering customized
logistics services to and value-added
new customers and solutions to its
segments. (S9, O4) customers, such as
online consultations,
home delivery, and
tracking services. (W3,
O3)

ST Strategies WT Strategies
1. M&P can use its large 1. M&P can update its
distribution network to technology in terms of
overcome the pharma products, by
challenges of political investing in more
instability, by having advanced and reliable
alternative routes and temperature control
backup plans for its systems, which will
deliveries, in case of ensure the quality and
protests and riots. (S1, safety of its products.
T1) This will also help M&P
2. M&P can use its strong to avoid any delays or
financial position to damages caused by
cope with the political instability, as
regulatory challenges it will be able to
and policy changes, by maintain its products
having sufficient at the optimal
reserves and temperature
contingency funds, regardless of the
and by complying with external conditions.
the taxation, import (W1, T1)
duties, price controls, 2. M&P can increase its
and quality standards. level of innovation and
(S3, T3) differentiation, by
3. M&P can use its developing new
trained and motivated products and services,
workforce to deal with or improving its
the intense existing ones, that can
competition from meet the changing
other distribution needs and preferences
companies, by offering of the customers. This
superior customer will also help M&P to
service, innovative deal with the intense
solutions, and competition from
competitive prices. other distribution
(S5, T5) companies, as it will be
able to offer unique
and value-added
solutions to its
customers. (W3, T5)
3. M&P can reduce its
dependency on its
international suppliers
and partners, by
developing its own
products and services,
or sourcing them
locally, rather than
relying on imports.
This will also help M&P
to prevent the theft of
its goods, as it will be
able to reduce its
commutation of goods
within cities and
increase its security
measures and
surveillance systems.
(W2, T2)
4. M&P can reduce its
dependency on its
international suppliers
and partners, by
having alternative
sources and backup
plans for its imports,
and by hedging against
currency fluctuations
and geopolitical
uncertainties. This will
also help M&P to cope
with the regulatory
challenges and policy
changes, as it will be
able to adjust its prices
and costs accordingly.
(W2, T3)

IFE Matrix:
Factors AS (1-10) WT R (1-4) WS
Strengths 9 0.09 4 0.36
Strong Distribution Channel 8 0.08 3 0.24
Diverse Vehicle Fleet 9 0.09 4 0.36
Cold-Chain Services 8 0.08 3 0.24
Well-trained Workforce 8 0.08 3 0.24
Logistics Services 8 0.08 3 0.24

Sub Total 0.65

Weaknesses
Outdated technology for pharma products 9 0.09 2 0.18
High dependency on international 9 0.09 2 0.18
suppliers
Low level of innovation and differentiation 8 0.08 1 0.08
Work environment and culture 8 0.08 2 0.16
Unsatisfied Customers 9 0.09 1 0.09
Inefficient Tracking system 8 0.08 1 0.08
Sub Total 100 1.00 2.45

Recommendation:

Muller & Phipps Pakistan’s performance has been rated as slightly below average in the IFE model,
receiving a score of 2.45 out of 4 (2.5 being the average score).

Muller & Phipps Pakistan has shown significant strategic advantages in its distribution network and
relationships with multinational companies. However, there are areas where the company could
improve. The company could benefit from investing more in technology and digital transformation to
improve its supply chain efficiency and customer service.

While Muller & Phipps is known for its strong distribution network, there might be room for
improvement in its warehousing and logistics operations. For example, the company could explore
more efficient inventory management systems or more sustainable transportation methods.

Furthermore, Muller & Phipps could consider diversifying its product portfolio or expanding into new
markets to reduce its dependence on a few key clients and increase its market share. This would not
only help the company to mitigate risks but also provide growth opportunities.

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