Bcg matrix model marketing strategies marketing essay

Using the BCG Matrix (Growth Market Share Matrix) to review your product portfolio

Stars can eventually become cash cows if they sustain their success until a time when the market growth rate declines. However, since these business units are growing rapidly, they have the potential to turn into stars. SABIC Innovative can move into direct marketing with the final consumers by establishing good partnerships through joint ventures etc.

Dogs hold low market share compared to competitors and operate in a slowly growing market. The four categories are: Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis.

Marci Martin With an Associate's Degree in Business Management and nearly twenty years in senior management positions, Marci brings a real life perspective to her articles about business and leadership. Volume Function — The corporation assures the customer that the product is supplied properly and on time thus meeting their demands.

On the other hand, industry attractiveness is influenced by drivers such as pricing trends, economies of scale, market size, market growth rate, segmentation, distribution structure, etc. SABIC has developed its vision, and mission through which it works to achieve it. Money from dogs and cash cows should be invested in question marks with the aim of transforming some of those question marks into stars.

It has potential to gain market share and become a star, which would later become cash cow. Additional reporting by Katherine Arline and Karina Fabian.

The four quadrants are designated Stars upper leftQuestion Marks upper rightCash Cows lower left and Dogs lower right. Product Development This strategy focuses on reaching the existing market with new products.

Difference Between BCG and GE Matrices

BCG matrix is simpler in comparison to GE matrix, as the former is easy to draw and consist of only four cells, while the latter consist of nine cells. You need to get your payoff from growth when the growth slows; you lose your opportunity if you hesitate.

The indirect functions are categorised as: In general, they are not worth investing in because they generate low or negative cash returns. You can download a copy of our latest CIM Marketing Prospectus or contact us for more information at any time.

Diversification — A new range of products and missions are set to the firm. It classifies business portfolio into four categories based on industry attractiveness growth rate of that industry and competitive position relative market share. The two dimensions on which BCG matrix is based are market growth and market share.

As income level goes up the demand for the products also increases. Our tutor gave us highest mark in the class. Retrenchment, divestiture, liquidation Cash cows.

What Is the BCG Model in Marketing?

Question marks are the brands that require much closer consideration. The automotive companies being the business customers needed to comply with emission norms set up in the European Legislation — Euro 5 standards. Due to many substitutes available in the market for Toyota products as other manufacturers are producing same quality products as well.

The result of this strategic architecture, are based on a thorough analysis of corporate resources and skills, as well as the orchestration of strategic resources and capabilities over time in measures of productivity. The BCG matrix (aka B-Box, B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in to help corporations with analyzing their business units or product lines.

Marketing Strategy At the heart of any business strategy is a marketing strategy Businesses exist to deliver products that satisfy customers. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services.

The BCG Strategic Model is a method of approaching and analyzing business marketing and growth developed by the Boston Consulting Group. Introduction: Unilever is a company that serves in almost all the continents and over countries of the world. I opted to evaluate the Boston Consulting Group model, which is an established tool of the strategic management field, used frequently in marketing circles to optimize product mix.

Where alternative versions of the matrix have come up in recent studies, the traditional BCG Matrix continues to be popular and this paper intends to evaluate.

Oct 19,  · In this webinar I explain the BCG (Boston Consultancy Group) matrix. I explain how to use it, fill it in, calculate relative market share and the pro's and con's of the model.

Models used to develop the strategic marketing strategy, such as Porter’s 5 forces, SWOT, STEEPLE, BCG matrix and Ansoff matrix 2. discuss the links between strategic positioning and marketing tacticsUnderstand and discuss: 1.

Bcg matrix model marketing strategies marketing essay
Rated 5/5 based on 7 review
Strategic Marketing Management | Free Essays -