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BCG Matrix Explained- Product Fitment(Neelkamal Chair)

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Project Goals

The goal of the project is to understand the BCG(Boston Consulting Group) Matrix and fitment of the specified product- Neelkamal Chair into the Matrix.

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Origin and Theory- BCG Matrix

In the 1970s, BCG created and popularized the BCG( Boston Consulting Group) Matrix, also known as the "growth-share matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs", and then allocate cash accordingly, moving money from "cash cows" toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential. It is based on the product life cycle theory that determines what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high growth products in need of cash inputs and low growth products that generate a lot of cash.
It has 2 dimensions- market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the products market grows, the better it is for the company. The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management," as BCG says.

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BCG Matrix

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The BCG Matrix Method

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This method can help understand a frequently made strategy mistake: having a onesize-fits-all-approach strategy, such as a generic growth target( 9% per year) or a generic return on capital of say, 9.5% for an entire corporation. In such a scenario: Cash Cows Business Units will beat their profit target easily; their management have an easy job and are often praised anyhow. Even worst, they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore. Dogs Business Units fight an impossible battle and, even worse, investments are made now and then inhopeless attempts to turn the business around. As a result (all) Question Marks and Stars Business Units get mediocre size investment funds. In this way they are unable to ever become cash cows.

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Competitive Analysis, Cont.

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Technology

New technology being used


Benefits

Standards being adopted


Benefits

Standards specifically being ignored


Drawbacks & benefits

DYA: define your acronyms!


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Team/Resources

State assumptions about resources allocated to this project


People Equipment Locations Support & outside services Manufacturing Sales

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Procedures
Highlight any procedural differences from regular projects of this type Discuss requirements, benefits, and issues of using new procedures

FOR MORE INFO...

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Schedule

Review high-level schedule milestones here


Phase 1 Phase 2 Phase 3

Jan

Feb

Mar

Apr

May

Jun

July

Sep

Oct

Nov

Dec

FOR MORE INFO...

List location or contact for detailed schedule (or other related documents) here
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Current Status

High-level overview of progress against schedule


On-track in what areas Behind in what areas Ahead in what areas

Unexpected delays or issues

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Related Documents

Marketing plan
Location or contact name/phone

Budget
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Post mortem
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Submit questions
Location or contact name/phone
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