SlideShare a Scribd company logo
1 of 20
Download to read offline
Boston Matrix Analysis
BUSINESS PORTFOLIO ANALYSIS
• Is a collection business and products that make-up
the company. The best business portfolio is one that
fits the company’s strengths and helps exploit the
most attractive opportunities.
• Is an organizational strategy formulation technique
based on the philosophy that the organization
should develops strategy much as they handle
investments portfolios.
• Just as sound financial and unsound ones discarded.
• Sound organizational activities should be
emphasized and unsound ones deemphasized.
Most popular business portfolios
• BCG Growth-Share Matrix
• The GE Multifactor Portfolio Matrix by
General electric Company and McKinsey
• Matsushita Strategy Matrix
• Road mapping
• Purpose: “Enable strategic planners to
select the optimal strategies for the
individual products whilst achieving
overall firm objectives” (Mcnamee, 1985)
Examples of Portfolios

Virgin: trans, planes,
cola, music store
Proctor & Gamble:
Detergent, nappies

Unilever: ice cream,
tea, spreads

Gillette: batteries,
shaving products
PRODUCT PORTFOLIO ANALYSIS
• Matrix produced by Boston Consulting Group
(BCG )
• Box model relationship between a division or
product’s current or future revenue potential and
the appropriate management stance.
• The matrix chart symptoms into a diagnosis so that
an effective cure or management behavior can be
adopted.
• Derivatives have been developed that are more
qualitative and more geared to developing
interpretation of the choice to be made.
– Matrix classified division or products according to their
present market share and future growth of the market
Cont.
• A successful product which last from emergent to
mature market goes clockwise around the
matrix
• The intention of BCG matrix is to distinguish
between the cash generators and cash
consumers.
• The matrix can be used to recommend an outline
strategy to follow.
• Conclusion: Milk the cows, divest the dogs, invest
the stars and examine the question marks
Portfolio analysis
“the strategic units that make-up the
company and attempts to evaluate the
current effectiveness and vulnerabilities”
(McDonald et al, 1992)
• How much of our time and money should we
spend on our best products to ensure that they
continue to be successful?
• How much of our time and money should we
spend developing new costly products, most of
which will never be successful?
BCG Positions Throughout the Product
Lifecycle
Example of products portfolio
BCG Matrix
Boston matrix analysis
What is a Cash Cow?
• Products/divisions in this segment are those the
current high income earners for organization.
• They expected to provide the major part of current
profits and form the major source of funding for
future developments.
• However, Cash Cows are relatively short-term so
they are not expected to provide significant future
revenues.
• For business areas and products in this segment, the
organization should look to adopt measures,
including the use of IS, to increase the profit, extend
the life time or shift the division or product into the
Star segment. These are the well-established
products in mature markets.
What is a Star?
• Products/business divisions in this segment are the ones
that provide significant revenue now and are expected to
continue to do so in the future.
• In this segment, the organization will wish to seek
opportunities to increase profits and extend the life of the
product or division.
• These are the market leader products in growth markets.
• Since these products or divisions require ongoing
investments they do not generate as much margin as
Cash Cows do.
• Again these measures may include the judicious use of
IS.
What is a Dead Dog?
• Divisions or products in this segment provide little or
no contribution to profits today and it is not expected
that this situation will change.
• This segment should be removed, which may be
achieved by divestment of the division or product, or
by taking steps to reduce associated costs or to move
the division or product into the Cash Cow, or even, if
lucky, the Star segment.
• These are the products that have lost market share to
competitors or are in declining markets.
What is a ?
• Divisions or products that organization is currently
prepared to ‘carry’ although they make little or no
contribution to revenue now, they are expected to do
so in the future.
• Usually young areas or products and probably still
being developed. Investments should be made
cautiously since the risks associated with this segment
are higher .
• Clearly the organization will seek ways to ensure that
the divisions/products of this segment quickly mature
into highly profitable Stars. These are the products
with low market share but in fast growing markets. If
successful these products or divisions will become
Stars.
Boston Box - Uses
• Simplifies complex situations
• Target setting tool
• Encourages strategies to view their
business as collection of diversified
flows and investments
• Success sequences
• Disaster sequences
Sequence of action of portfolio
Example: Ford Motor
QUESTION MARKS: New products in development (or ones
that have slipped back) in high growth markets seen as
likely future cash generators (Stars or Cash cows). Risky
areas but need investment hence overall result is zero
contribution. (e.g. Off road recreational vehicles, pick-up
trucks)
STAR: Often a new product achieving a high market
share thus generating high revenues, but offset by R&D
cost recovery or ongoing investment in promotion,
product and market extension, hence net loss. (e.g. Ford
KA series, Galaxy and latterly Ford Focus)
CASH COW: Well established products in mature
markets generating ongoing profits and future
development revenues (e.g. For Fiesta, Mondeo)
DOGS: Products that have lost market share to
competitors or are in decline generating little profit
but requiring cash use. Either require retiring or reinventing requiring investment hence cash flow
negative. (e.g. Ford Escort, Scorpio, Probe)
END

More Related Content

What's hot

Martix and different models
Martix and different modelsMartix and different models
Martix and different modelsManish Chaubey
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrixwanthay
 
Portfolio planning
Portfolio planning Portfolio planning
Portfolio planning Azeem Abbas
 
Portfolio analysis and case study of Tata group
Portfolio analysis and case study of Tata groupPortfolio analysis and case study of Tata group
Portfolio analysis and case study of Tata groupAnjanaS27
 
Hofers Method Of Business Portfolio Analysis[1].Ppt2003
Hofers Method Of Business Portfolio Analysis[1].Ppt2003Hofers Method Of Business Portfolio Analysis[1].Ppt2003
Hofers Method Of Business Portfolio Analysis[1].Ppt2003k16
 
Marketing Strategy
Marketing StrategyMarketing Strategy
Marketing StrategyArpit Sharma
 
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...Mohammadali Surti
 
GRAND STRATEGY
GRAND STRATEGYGRAND STRATEGY
GRAND STRATEGYmaadulram
 
Portfolio analysis - strategic implementation - Manu Melwin Joy
Portfolio analysis  - strategic implementation - Manu Melwin JoyPortfolio analysis  - strategic implementation - Manu Melwin Joy
Portfolio analysis - strategic implementation - Manu Melwin Joymanumelwin
 
Portfolio Analysis
Portfolio AnalysisPortfolio Analysis
Portfolio AnalysisShirish Beke
 
GE MULTIFACTOR ANALYSIS
GE MULTIFACTOR ANALYSISGE MULTIFACTOR ANALYSIS
GE MULTIFACTOR ANALYSISRajiv Sharma
 
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 sem
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 semThe BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 sem
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 semBabasab Patil
 
Corporate level analytical tools_BCG Matrix and GE nine cell matrix
Corporate level analytical tools_BCG Matrix and GE nine cell matrixCorporate level analytical tools_BCG Matrix and GE nine cell matrix
Corporate level analytical tools_BCG Matrix and GE nine cell matrixRoshan Pant
 

What's hot (20)

Portfolio matrix
Portfolio matrixPortfolio matrix
Portfolio matrix
 
Adl matrix (1)
Adl matrix (1)Adl matrix (1)
Adl matrix (1)
 
Martix and different models
Martix and different modelsMartix and different models
Martix and different models
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
Hofer
HoferHofer
Hofer
 
Portfolio planning
Portfolio planning Portfolio planning
Portfolio planning
 
Portfolio analysis and case study of Tata group
Portfolio analysis and case study of Tata groupPortfolio analysis and case study of Tata group
Portfolio analysis and case study of Tata group
 
Hofers Method Of Business Portfolio Analysis[1].Ppt2003
Hofers Method Of Business Portfolio Analysis[1].Ppt2003Hofers Method Of Business Portfolio Analysis[1].Ppt2003
Hofers Method Of Business Portfolio Analysis[1].Ppt2003
 
Marketing Strategy
Marketing StrategyMarketing Strategy
Marketing Strategy
 
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...
Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY M...
 
GRAND STRATEGY
GRAND STRATEGYGRAND STRATEGY
GRAND STRATEGY
 
Ge final11249
Ge final11249Ge final11249
Ge final11249
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
Ge
GeGe
Ge
 
Portfolio analysis - strategic implementation - Manu Melwin Joy
Portfolio analysis  - strategic implementation - Manu Melwin JoyPortfolio analysis  - strategic implementation - Manu Melwin Joy
Portfolio analysis - strategic implementation - Manu Melwin Joy
 
Portfolio Analysis
Portfolio AnalysisPortfolio Analysis
Portfolio Analysis
 
Business Portfolio Analysis
Business Portfolio AnalysisBusiness Portfolio Analysis
Business Portfolio Analysis
 
GE MULTIFACTOR ANALYSIS
GE MULTIFACTOR ANALYSISGE MULTIFACTOR ANALYSIS
GE MULTIFACTOR ANALYSIS
 
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 sem
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 semThe BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 sem
The BCG Matrix Grand Strategies in Steatergic Management Studies mba 4 sem
 
Corporate level analytical tools_BCG Matrix and GE nine cell matrix
Corporate level analytical tools_BCG Matrix and GE nine cell matrixCorporate level analytical tools_BCG Matrix and GE nine cell matrix
Corporate level analytical tools_BCG Matrix and GE nine cell matrix
 

Viewers also liked

Virgin Group Strategic Development
Virgin Group Strategic Development Virgin Group Strategic Development
Virgin Group Strategic Development University of Jordan
 
Virgin Group
Virgin GroupVirgin Group
Virgin Groupkcb123456
 
Virgin - Richard Branson
Virgin - Richard BransonVirgin - Richard Branson
Virgin - Richard BransonLara Borges
 
Richard Branson leadership & personality traits
Richard Branson leadership & personality traitsRichard Branson leadership & personality traits
Richard Branson leadership & personality traitsAkhil Pillai
 
Richard Branson as a Leader
Richard Branson as a LeaderRichard Branson as a Leader
Richard Branson as a LeaderA Y
 
Sir richard branson leadership
Sir richard branson leadershipSir richard branson leadership
Sir richard branson leadershipSandeep Mane
 
Sir Richard Branson
Sir Richard BransonSir Richard Branson
Sir Richard BransonShray Jali
 
Boston matrix and product life cycle
Boston matrix and product life cycleBoston matrix and product life cycle
Boston matrix and product life cyclePatrick Rubix
 
Sir Richard Branson's Leadership Style
Sir Richard Branson's  Leadership Style  Sir Richard Branson's  Leadership Style
Sir Richard Branson's Leadership Style Nagarajan Supramaniam
 
BCG Matrix of Nestle
BCG Matrix of NestleBCG Matrix of Nestle
BCG Matrix of NestleMutahir Bilal
 
Virgin Atlantic Brand Strategy
Virgin Atlantic Brand Strategy Virgin Atlantic Brand Strategy
Virgin Atlantic Brand Strategy Sayaka Brand
 

Viewers also liked (20)

Virgin Group
Virgin GroupVirgin Group
Virgin Group
 
Virgin Group Strategic Development
Virgin Group Strategic Development Virgin Group Strategic Development
Virgin Group Strategic Development
 
Virgin case study for MBA
Virgin case study for MBAVirgin case study for MBA
Virgin case study for MBA
 
Virgin Group
Virgin GroupVirgin Group
Virgin Group
 
Virgin - Richard Branson
Virgin - Richard BransonVirgin - Richard Branson
Virgin - Richard Branson
 
Richard Branson leadership & personality traits
Richard Branson leadership & personality traitsRichard Branson leadership & personality traits
Richard Branson leadership & personality traits
 
Richard Branson as a Leader
Richard Branson as a LeaderRichard Branson as a Leader
Richard Branson as a Leader
 
Sir richard branson leadership
Sir richard branson leadershipSir richard branson leadership
Sir richard branson leadership
 
BCG matrix
BCG matrixBCG matrix
BCG matrix
 
Sir Richard Branson
Sir Richard BransonSir Richard Branson
Sir Richard Branson
 
Ford pp
Ford ppFord pp
Ford pp
 
Boston matrix and product life cycle
Boston matrix and product life cycleBoston matrix and product life cycle
Boston matrix and product life cycle
 
Sir Richard Branson's Leadership Style
Sir Richard Branson's  Leadership Style  Sir Richard Branson's  Leadership Style
Sir Richard Branson's Leadership Style
 
BCG Matrix of Nestle
BCG Matrix of NestleBCG Matrix of Nestle
BCG Matrix of Nestle
 
BCG Matrix
BCG MatrixBCG Matrix
BCG Matrix
 
Virgin Atlantic Brand Strategy
Virgin Atlantic Brand Strategy Virgin Atlantic Brand Strategy
Virgin Atlantic Brand Strategy
 
Chapter1introduction
Chapter1introductionChapter1introduction
Chapter1introduction
 
Subrata roy
Subrata roySubrata roy
Subrata roy
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
Stay in Tune with Our Aging Future
Stay in Tune with Our Aging FutureStay in Tune with Our Aging Future
Stay in Tune with Our Aging Future
 

Similar to Boston matrix analysis

BCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXBCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXJagdeepSingh394
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentationRishi Narula
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentationRishi Narula
 
10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.pptMusangabuEarnest
 
Chapter # 2 kotler
Chapter # 2 kotlerChapter # 2 kotler
Chapter # 2 kotlerAqibSheikh10
 
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce Stratorg
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce StratorgPRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce Stratorg
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce StratorgOlugbenga Omojola {FSM, MBA}
 
Information about BCG Matrix
Information about BCG Matrix Information about BCG Matrix
Information about BCG Matrix Bajajpankaj
 
Strategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisStrategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisDr. Parveen Kaur Nagpal
 
Explain What is the BCG Matrix with Example?
Explain What is the BCG Matrix with Example? Explain What is the BCG Matrix with Example?
Explain What is the BCG Matrix with Example? Sonam Mishra
 
Chapter 3- Strategic Marketing Planning Edited.pptx
Chapter 3- Strategic Marketing Planning Edited.pptxChapter 3- Strategic Marketing Planning Edited.pptx
Chapter 3- Strategic Marketing Planning Edited.pptxamanueltafese2
 
Mmi x marketing strategies
Mmi  x  marketing strategiesMmi  x  marketing strategies
Mmi x marketing strategiesAakansha Singhal
 
Mmi x marketing strategies
Mmi  x  marketing strategiesMmi  x  marketing strategies
Mmi x marketing strategiesShivam Taneja
 
BCG & GE Models.ppt
BCG & GE Models.pptBCG & GE Models.ppt
BCG & GE Models.ppt015HARISRIAZ
 
BCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixBCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixNavneet Dwivedi
 

Similar to Boston matrix analysis (20)

BCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXBCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIX
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
stratergic management
stratergic managementstratergic management
stratergic management
 
Chapter # 2 kotler
Chapter # 2 kotlerChapter # 2 kotler
Chapter # 2 kotler
 
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce Stratorg
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce StratorgPRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce Stratorg
PRODUCT LIFE CYCLES AND THE BOSTON (BCG) MATRIX by Workforce Stratorg
 
Information about BCG Matrix
Information about BCG Matrix Information about BCG Matrix
Information about BCG Matrix
 
Strategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisStrategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic Analysis
 
Explain What is the BCG Matrix with Example?
Explain What is the BCG Matrix with Example? Explain What is the BCG Matrix with Example?
Explain What is the BCG Matrix with Example?
 
Essay On BCG Matrix
Essay On BCG MatrixEssay On BCG Matrix
Essay On BCG Matrix
 
Chapter 3- Strategic Marketing Planning Edited.pptx
Chapter 3- Strategic Marketing Planning Edited.pptxChapter 3- Strategic Marketing Planning Edited.pptx
Chapter 3- Strategic Marketing Planning Edited.pptx
 
Mmi x marketing strategies
Mmi  x  marketing strategiesMmi  x  marketing strategies
Mmi x marketing strategies
 
General strategies
General strategiesGeneral strategies
General strategies
 
Mmi x marketing strategies
Mmi  x  marketing strategiesMmi  x  marketing strategies
Mmi x marketing strategies
 
BCG & GE Models.ppt
BCG & GE Models.pptBCG & GE Models.ppt
BCG & GE Models.ppt
 
Swot Analysis
Swot AnalysisSwot Analysis
Swot Analysis
 
3.pptx
3.pptx3.pptx
3.pptx
 
BCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixBCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share Matrix
 

More from Nur Aqilah Ahmad Khairi (8)

Sains pemakanan dalam islam
Sains pemakanan dalam islamSains pemakanan dalam islam
Sains pemakanan dalam islam
 
Software engineering
Software engineeringSoftware engineering
Software engineering
 
The effects of social interaction to productivity at work
The effects of social interaction to productivity at workThe effects of social interaction to productivity at work
The effects of social interaction to productivity at work
 
Customer intimacy
Customer intimacyCustomer intimacy
Customer intimacy
 
Software project management
Software project managementSoftware project management
Software project management
 
Asp.net
Asp.netAsp.net
Asp.net
 
Web services
Web servicesWeb services
Web services
 
The information systems life cycle
The information systems life cycleThe information systems life cycle
The information systems life cycle
 

Recently uploaded

The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...Aggregage
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding TeamAdam Moalla
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfDianaGray10
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesMd Hossain Ali
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URLRuncy Oommen
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDELiveplex
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1DianaGray10
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesDavid Newbury
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Commit University
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsSafe Software
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 

Recently uploaded (20)

The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URL
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond Ontologies
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 

Boston matrix analysis

  • 2. BUSINESS PORTFOLIO ANALYSIS • Is a collection business and products that make-up the company. The best business portfolio is one that fits the company’s strengths and helps exploit the most attractive opportunities. • Is an organizational strategy formulation technique based on the philosophy that the organization should develops strategy much as they handle investments portfolios. • Just as sound financial and unsound ones discarded. • Sound organizational activities should be emphasized and unsound ones deemphasized.
  • 3. Most popular business portfolios • BCG Growth-Share Matrix • The GE Multifactor Portfolio Matrix by General electric Company and McKinsey • Matsushita Strategy Matrix • Road mapping • Purpose: “Enable strategic planners to select the optimal strategies for the individual products whilst achieving overall firm objectives” (Mcnamee, 1985)
  • 4. Examples of Portfolios Virgin: trans, planes, cola, music store Proctor & Gamble: Detergent, nappies Unilever: ice cream, tea, spreads Gillette: batteries, shaving products
  • 5. PRODUCT PORTFOLIO ANALYSIS • Matrix produced by Boston Consulting Group (BCG ) • Box model relationship between a division or product’s current or future revenue potential and the appropriate management stance. • The matrix chart symptoms into a diagnosis so that an effective cure or management behavior can be adopted. • Derivatives have been developed that are more qualitative and more geared to developing interpretation of the choice to be made. – Matrix classified division or products according to their present market share and future growth of the market
  • 6. Cont. • A successful product which last from emergent to mature market goes clockwise around the matrix • The intention of BCG matrix is to distinguish between the cash generators and cash consumers. • The matrix can be used to recommend an outline strategy to follow. • Conclusion: Milk the cows, divest the dogs, invest the stars and examine the question marks
  • 7. Portfolio analysis “the strategic units that make-up the company and attempts to evaluate the current effectiveness and vulnerabilities” (McDonald et al, 1992) • How much of our time and money should we spend on our best products to ensure that they continue to be successful? • How much of our time and money should we spend developing new costly products, most of which will never be successful?
  • 8. BCG Positions Throughout the Product Lifecycle
  • 12. What is a Cash Cow? • Products/divisions in this segment are those the current high income earners for organization. • They expected to provide the major part of current profits and form the major source of funding for future developments. • However, Cash Cows are relatively short-term so they are not expected to provide significant future revenues. • For business areas and products in this segment, the organization should look to adopt measures, including the use of IS, to increase the profit, extend the life time or shift the division or product into the Star segment. These are the well-established products in mature markets.
  • 13. What is a Star? • Products/business divisions in this segment are the ones that provide significant revenue now and are expected to continue to do so in the future. • In this segment, the organization will wish to seek opportunities to increase profits and extend the life of the product or division. • These are the market leader products in growth markets. • Since these products or divisions require ongoing investments they do not generate as much margin as Cash Cows do. • Again these measures may include the judicious use of IS.
  • 14. What is a Dead Dog? • Divisions or products in this segment provide little or no contribution to profits today and it is not expected that this situation will change. • This segment should be removed, which may be achieved by divestment of the division or product, or by taking steps to reduce associated costs or to move the division or product into the Cash Cow, or even, if lucky, the Star segment. • These are the products that have lost market share to competitors or are in declining markets.
  • 15. What is a ? • Divisions or products that organization is currently prepared to ‘carry’ although they make little or no contribution to revenue now, they are expected to do so in the future. • Usually young areas or products and probably still being developed. Investments should be made cautiously since the risks associated with this segment are higher . • Clearly the organization will seek ways to ensure that the divisions/products of this segment quickly mature into highly profitable Stars. These are the products with low market share but in fast growing markets. If successful these products or divisions will become Stars.
  • 16. Boston Box - Uses • Simplifies complex situations • Target setting tool • Encourages strategies to view their business as collection of diversified flows and investments • Success sequences • Disaster sequences
  • 17. Sequence of action of portfolio
  • 18. Example: Ford Motor QUESTION MARKS: New products in development (or ones that have slipped back) in high growth markets seen as likely future cash generators (Stars or Cash cows). Risky areas but need investment hence overall result is zero contribution. (e.g. Off road recreational vehicles, pick-up trucks) STAR: Often a new product achieving a high market share thus generating high revenues, but offset by R&D cost recovery or ongoing investment in promotion, product and market extension, hence net loss. (e.g. Ford KA series, Galaxy and latterly Ford Focus)
  • 19. CASH COW: Well established products in mature markets generating ongoing profits and future development revenues (e.g. For Fiesta, Mondeo) DOGS: Products that have lost market share to competitors or are in decline generating little profit but requiring cash use. Either require retiring or reinventing requiring investment hence cash flow negative. (e.g. Ford Escort, Scorpio, Probe)
  • 20. END