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Application of BCG Matrix

This document provides an introduction to and explanation of the Growth/Share Matrix, a tool created by Boston Consulting Group in 1970 to help companies analyze their product portfolios. The matrix plots products based on their market share on the x-axis and market growth rate on the y-axis to categorize them as stars, cash cows, question marks or dogs. It then provides a 5-step process for applying the matrix and analyzes some of Pran-RFL Group's products as an example, identifying ketchups as stars, spices as question marks and Frooto as a cash cow. However, the matrix is limited in only considering market factors and not other variables that impact business units.

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Jannatun Nayeema
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95 views

Application of BCG Matrix

This document provides an introduction to and explanation of the Growth/Share Matrix, a tool created by Boston Consulting Group in 1970 to help companies analyze their product portfolios. The matrix plots products based on their market share on the x-axis and market growth rate on the y-axis to categorize them as stars, cash cows, question marks or dogs. It then provides a 5-step process for applying the matrix and analyzes some of Pran-RFL Group's products as an example, identifying ketchups as stars, spices as question marks and Frooto as a cash cow. However, the matrix is limited in only considering market factors and not other variables that impact business units.

Uploaded by

Jannatun Nayeema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Application of Growth/Share

Matrix for four existing product


2

HELL
I am Jannatun Nayeema,

O!
ID: 2181011123
These are my team members
and their ID respectively.
3

▫ Noshin Mushtary 2181011041

▫ Sefatul Alam Supto 2181011077

▫ Shoeb Ahmed 2181011119

▫ Mohammad Ullah 2181011098


Introduction to Growth/Share Matrix
What is Growth/Share Matrix?

• The Boston Consulting Growth Matrix, also known as


Growth/Share Matrix, is a graphical tool, where the company’s
products and services can be plotted to help make key
business decisions.

• This matrix was created by Bruce D. Henderson for the Boston


Consulting Group in 1970.

• The y-axis of the graph represents rate of market growth while


the x-axis represents market share.
Understanding the Matrix
The chart or graph is divided into four categories.
Cash Cow: Low Market Growth and High Market Share 
• generate revenues in greater amounts than the investment required to
maintain their business
Dog: Low Market Growth and Low Market Share
• a smaller market share in a mature and slow-growing industry

Stars: High Market Growth and High Market Share 


• have a large market share in a fast-growing industry

Unknowns: High Market Growth and Low Market Share


• a smaller market share in a high-growth market
Limitations of the Matrix
• does not take into account any other factors except market growth

• underlying assumption that the business units are operating in isolation


in relation to each other

• fails to take into account different situations such as a business unit that
is dominating a niche but is overall less dominant in the larger industry
Application of Growth/Share Matrix
There are 5 steps for the BCG matrix that are discussed concisely:

Step 1 – Choose the Unit

Step 2 – Define the Market 

Step 3 – Calculate Relative Market Share


 
Step 4 – Calculate Market Growth Rate 

Step 5 – Draw Circles on the Matrix 


8

Example Pran-RFL Group:

Pran-RFL Group is one of the


largest conglomerates of
Bangladesh. This analysis
used the 2002 annual report
for its figures which can be
found here.
9

 Star, e.g. Pran Ketchup: Market growth rate


is 15%;market share is 7.6%; highest export
Question mark, e.g. Pran Spice: Market
growth rate is 11%; market share is 0.6%
Cash cow, e.g. Pran Frooto: ± 2.26 % is
growth rate per year; 5.8% market share growth
per year
Dogs, e.g. Pran Energy Drink: Market share
is approximately 1%; growth rate is 2tk/ bottle
10

THANK
YOU!
With this, we end our
Presentation here.
Thank you everyone for your
patience and support!

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