The purpose of the bcg matrix or growthshare matrix is to enable companies to ensure longterm revenues by balancing products requiring investment with products that should be managed for remaining profits. In the above example, cpm matrix demonstrates that coca cola is the market leader and dominates its rivals with highest points of 3. The qspm shows that coca cola can continue to boost market share and improve operating margins. Aug 04, 2019 the matrix is misrepresenting in some cases. Bcg matrix for samsung the example bcg matrix for samsung electricalelectronic products above is based on various statistics and reports available on the internet. Oct 08, 2016 the boston consulting group matrix bcg matrix can be used to analyze the different products being sold by the company in terms of their market share, sales generated on an annual basis and the potential for growth. But, these challenges can be overcome by the efficient business strategies. He reserved the name coca cola in the flowing script that is wellknown today. The bcg growthshare matrix is old but has stood the test of time. Vrio analysis for nike bcg matrix case study identified the four main attributes which helps the organization to gain a competitive advantages. The company has perfected its product mix over the years according to whats working and whats not.
Bcg matrix and text coca cola of eight of the most. Solved analyze this case and conduct a value chain. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. However, there is a large threat of competition from gatorade. A perfect example to demonstrate bcg matrix could be the bcg matrix of pepsico. An example of a product that can be classified as star in the bcg matrix is the led lamp from philips. The qspm shows that cocacola can continue to boost market share and improve operating margins. Using the boston consulting group portfolio matrix to analyze. This tool can also be used to analyze the launch of a product in the market.
Coca cola also known as coke is a popular carbonated soft drink sold in stores, restaurants and vending. You can practice doing it for companies that are well known, like samsung, nestle, itc, coca cola, apple, etc. Stars qualifies an sbus having huge piece of the pie in a quickly developing industry growth phase. Bcg matrix also is known as the growthshare matrix is used by organizations to classify their business units or products into 4 different categories. It was also awarded highest brand equity award in 2011 by interbrand. Bcg matrix boston consulting group group analysis of companies sbu, product lines, products and services.
Beverages pepsicola north america pepsicola mountain dew. Bcg analysis is an acronym for boston consulting group analysis. Page assignment principles of management assignment principles of management submitted to mr. The boston consulting group bcg matrix is used in analyzing the various products being sold by manufacturers. As explained by others, i think the bcg matrix is a way to think about existing products assets and think about their usage strategy going forward. Create highquality charts, infographics, and business visualizations for free in seconds. The coca cola brand is globally valued and recognized. The coca cola company has a very rich history and spread over the world, the study in this report specially the particular space matrix tells us that coca cola company should pursue an aggressive strategy. The dogs in the bcg matrix are products at the end of the product lifecycle, or products that have had to compete against the competition. Over the years, pepsi has faced stiff competition from cocacola and has also seen its market share take a hit. The boston consulting group bcg is a renowned organization. The advantages of the bcg growth share matrix are manifold. Powerade currently has high market shares and high growth rate.
Tactical planning and action evaluation space matrix since demonstrated in show 9, coca cola organization, whose monetary strength is actually a ruling element in the. The creator of the bcg matrix used this variable to actually measure a companys competitiveness. The paper concludes by discussing the negative impact of following not. Collaboration and productivity is also a valuable part of this companys success. Analyze this case and conduct a value chain analysis vca for coca cola company 20 marks question two. Market share of relative market larggest market market revenue products share competitor share growth. The concept of bcg matrix was firstly put forward during 1970 by bruce henderson for the boston consulting group with the intentions of helping companies in their business evaluation practices on the basis of their business units or product lines middleton, 2003.
For example, happiness factory, coca cola christmas, and the zero zero 7 plans are being implemented in europe. But because of this coca cola is the brand with the highest brand equity. To use the chart, analysts plot a scatter graph to rank the business units or products on the basis of their relative market shares and growth rates. Therefore it is most likely to require an increased investment of resources in order to sustain this level of continuous growth. The bcg matrix aka boston matrix is a tool which uses the relative market share and growth rate of the various product lines of an organization to assess the relative strength of products in a brands portfolio. With the help of this tool an outstanding marketing strategy can easily be determined. Coca cola is a large scale company that has been operating in the beverage industry for more than a century, supplying different products to 200 countries. Coca cola also known as coke is a popular carbonated soft drink sold in stores, restaurants and vending machines. Beverages pepsi cola north america pepsi cola mountain dew. The bcg matrix shows coca cola s leadership location in its main sections.
Here are the four quadrants of pepsicos growthshare matrix. Growthshare matrix, boston box, boston matrix, boston consulting group analysis. In the case of pepsico, pepsi falls in the star quadrant of the bcg matrix of pepsi. The margins are low, the market share is low and the market barely grows or. The paper describes and explains the bcg portfolio matrix model, applying the model to several divisions of a small liberal arts university. Space matrix of coca cola company space matrix calculations. Jul 19, 2018 jan 30, 2018 marketing decision making, the bcg matrix plays an effective tool for strategic.
Bcg boston consulting group matrix templates downloads. Aug 09, 2019 the matrix is misrepresenting in some cases. The bcg matrix was developed by the boston consulting group in 1970 and is a planning tool that graphically represents a companys portfolio of products and services in the hope that the company will decide which products it should keep, sell, or invest in. Bcg matrix for cocacola company bcg matrix analysis. It is produced by the coca cola company, which is also occasionally referred to as coca cola or coke. Highest brand equity coca cola is undoubtedly one of the most renowned brands with the highest brand equity. Its soft drinks are the mostselling drinks in history. Sep, 2019 created by the boston consulting group, the bcg matrix also known as the boston or growth share matrix provides a framework for analyzing products according to growth and market share. The boston consulting group matrix bcg matrix can be used to analyze the different products being sold by the company in terms of their market share, sales generated on an annual basis and. Bcg matrix for cokecola products in 2015 market share of.
Ife matrix efe matrix bcg matrix swot analysis of coca cola. Boston consulting group matrix bcg this technique is particularly useful for multidivisional or multiproduct companies. Nike bcg matrix case study solution and analysis of harvard. Strong brand identity coca cola is a highly popular brand with a unique brand identity. Swot analysis is a special technique which was invented by albert humphrey as a premeditated preparation device that is used to appraise the strengths, weaknesses, opportunities and threats involved especially when a company is planning to go for a new or renew an exiting project, it involves giving. Boston matrix bcg matrix at the end of the 1960s, bruce henderson, founder of the boston consulting group, bcg, developed his portfolio matrix. Coca cola also known as coke is a popular carbonated soft drink sold in stores, restaurants and vending machines in over two hundred countries. Portfolio analysis for cocacola company using ge matrix. The exact measure for relative market share is the focal companys share relative to its largest competitor.
A prime example of this was the launch of cherry coke in 1985 coca cola s first extension beyond its original recipe and a strategy prompted by smallscale competitors who had identified a profitable opportunity to add cherryflavoured syrup to coca cola and resell it. Here are a few examples to help you understand the quadrants of the concept even better. Bcg matrix, boston matrix, bcg matrix template groupmap. The market share, potential for growth and annual sales are taken into consideration. Dominant market share out of cocacola and pepsi, the only two largest manufacturers of soft drinks in the beverage segment, coca. Bcg matrix was a framework originally devised by boston consulting group to strategically measure the potential growth rate of a company within its industry versus its relative market share. To help you make your decision, you can use the classic boston consulting group matrix, which mba students have used for decades.
Ife matrix efe matrix bcg matrix swot analysis of coca. How significant and practicably usable is it today, in the light of vast developments in management tools that help assess market conditions. The example bcg matrix for coca cola above is based on various statistics and reports available on the internet. It plots a companys offerings in a four square matrix, where the xaxis represents. Portfolio analysis for cocacola company using ge matrix stratigy.
The composition of the portfolio can be critical tothe growth and success of the company. So if samsung has a 20 percent market share in the mobile phone industry and apple its largest competitor has 60 percent so to speak. The bcg matrix applies the criteria of market growth rate and market share to analyze brand portfolios and allocate financial resources. Coca cola bcg matrix free download as powerpoint presentation. The bcg model, when put into the bcg matrix template, can be varied in nature. The boston consulting group bcg matrix is a simple corporate planning tool, to assess a companys position in terms of its product range. The m atrix is established in 1970 by bruce d oolin henderson 1915 1992 for the bcg in boston. Make timelines, charts, maps for presentations, documents, or the web. Honey nut cheerios, the leading product in the category of breakfast cereal in the usa is a great example of a star product from general mills.
In this matrix two factors determine the success of a product. Oct 14, 2019 a perfect example to demonstrate bcg matrix could be the bcg matrix of pepsico. Coca cola is market leader, as a result of which the relative market share. Created by bruce henderson for the boston consulting group in 1970 to help corporations with analyzing their business units or product lines. Ge matrix in hindi general electric stoplight matrix. Coca cola swot analysis 2019 swot analysis of coca cola. Of eight of the most popular beverages sold by coca cola, there is current one star in the bcg matrix for coca cola, which is powerade. Largest brand valuation cocacola is listed as the 3rd best global brand on interbrands annual ranking.
This is also known as the growth market share matrix by plotting these factors it is possible to identify which products or brandsunits a company should invest further in, and which products it. Competitive profile matrix of cocacola mba lectures. Coca cola company is one of the leading manufacturers of sort drink in the whole world. The divisions or products compromise the organisations business portfolio. Scribd is the worlds largest social reading and publishing site. The bottling partners in different regions help in making the finished beverages available to the market. Tactical planning and action evaluation space matrix since demonstrated in show 9, cocacola organization, whose monetary strength is actually a ruling element in the. The bcg growth share matrix was evolved in the early 1970s by bruce henderson, founder of the boston consulting group, to help corporations make investment and disinvestment decisions related to their business units or product portfolios.
For example, happiness factory, cocacola christmas, and the zero zero 7 plans are being implemented in europe. Carry out a portfolio analysis to help you allocate resources efficiently and devise a successful business strategy. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns. Over the years, pepsi has faced stiff competition from coca cola and has also seen its market share take a hit. Coca cola international strategic management project report.
May 09, 2019 the bcg matrix shows cocacolas leadership location in its main sections. Jan 18, 2020 the matrix is misrepresenting in some cases. For example, if the analyst anticipates that over the next five years the market will grow 30 percent, then the vertical axis can be divided into 5 percent increments, from 0 to 30, and the divisions anticipated growth rate can be plotted against it. Nov 17, 2018 bcg matrix boston consulting group group analysis of companies sbu, product lines, products and services. Because of this, coca cola has come up with long term objectives. Coca cola is a multinational company that has been operating for over a century. Create my bcg matrix if you are working with a product portfolio, bcg growthshare matrix can give you a quick overview of how the products are doing and build a basis for further analysis. Bcg matrix analysis of patanjali patanjali bcg matrix. The bcg model assigns products into four categories stars, cash cows, question marks, and dogs quickly identifying which. View essay bcg matrix for coke cola products in 2015 from ba 311 at portland state university.
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