Case study based on bcg matrix

Invest just enough to maintain a share in the market. With the help of different dimensions, the SBUs can be mapped into the four fields of the matrix.

bcg matrix example companies

By combining these two variables into a matrix, a corporation can plot their business units accordingly and determine where to allocate extra financial resources, where to cash out and where to divest.

Despite the limitations, the BCG Matrix is a very simple and useful tool for portfolio managers to review their brands and products across industries and SBUs, and assist in prioritisation of investment and divestment.

bcg matrix example pepsi

The basic idea is that the individual business segments are always evaluated from these two dimensions. The goal is an optimal set of securities in terms of return and risk.

Bcg matrix case study pdf

Products mostly do not generate profit and may usually just break even. The here positioned SBUs are market leader in a high growth market. This is equivalent to around 5. A further limitation is the lack of exact definition of the dividing lines and the fact that the standard strategies do not have a universal application. Question Marks: Low market share business units in high growth markets. Cash Cows ultimately bring balance and stability to a portfolio. Although faced with accusations of perverse side-effects on the health of consumers and monopolistic practices by its producing company, Coca- Cola has remained a popular soft drink well into the first decade of the 21st century. The mission of this project was it to beak five world records. Background of the dimension relative market share is the strategic planning model of the experience curve or also known as economic of scale effect.

The strategies recommended after BCG analysis help the firm decide on the right line of action and help them implement the same. Provides an effective overview of where to focus first before further analysis.

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Case studies: BCG Matrix