Marketing strategy & bcg consulting model assignment

The salesperson for the winning workstation company was n top of and influenced every person at every stage of the decision making process. Boston Consulting Group (BCC) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCC, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of Sub’s (Strategic Business Units).

In other words, it is a comparative analysis of business potential and he evaluation of environment. According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share. Relative Market Share = SUB Sales this year leading competitors sales this year. Market Growth Rate = Industry sales this year – Industry Sales last year. I The analysis requires that both measures be calculated for each SUB. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance.

If ignored, then question marks may become dogs, while if huge investment is made, then they have potential of becoming stars. 4. Dogs- Dogs represent businesses having weak market shares in low-growth markets. They neither generate cash nor require huge amount of cash. Due to low market share, these business units face cost disadvantages. Generally retrenchment strategies are adopted because these firms can gain market share only at the expense of competitor’s/rival firms. These business firms have weak market share because of high costs, poor quality, ineffective marketing, etc.