SlideShare a Scribd company logo
1 of 12
Download to read offline
Presentation on
PORTFOLIO ANALYSIS- BCG MATRIX
PRESENTED BY
RAHUL KANEKAR
Portfolio Analysis – BCG Matrix
• BCG Introduction
• Elements of BCG
• Advantages and Limitations
• Nestle Case
• Nestle Portfolio
• Application of BCG on Nestle
• Conclusion
BCG Matrix – Introduction
BCG Matrix – Introduction
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
• BCG Matrix is also known as growth share matrix (aka Product Portfolio Matrix)
• It is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help
corporations to analyse their business units
• It help corporations to analyse their business units, that is, their product lines
• This helps the company allocate resources and is used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis
• The BCG-Matrix is helpful for managers to evaluate balance in the companies' current portfolio in the
form of Stars, Cash Cows, Question Marks and Dogs.
• BCG Matrix is constructed by taking Growth on one axis and relative market share of the portfolio on
another axis.
Different Elements of BCG Matrix
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
•Products which require less money
to maintain but yield high profitsCash Cow
•High potential, Relative Market
share low but future is brightStars
•Consuming lot of resources with
little growth
Question
Mark
•Definite underperformers, low
market share and low growthDog
Hang on to
these and
nurture them
Invest in this
product
Examine closely
either dump or
convert into star
Dumped
BCG matrix
Advantages & Limitations of BCG Matrix
BCG Matrix
Elements
of BCG
Advantages
&
Limitations
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
Advantages:
• BCG-Matrix is applicable to large companies that seek volume and experience effects
• The model is simple and easy to understand
• It provides a base for management to decide and prepare for future actions.
• If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell
new products at a price that is low enough to get early market share leadership. Once it becomes a star, it is
destined to be profitable.
Limitations:
• It neglects the effects of synergies between business units.
• High market share is not the only success factor.
• Market growth is not the only indicator for attractiveness of a market.
• Sometimes Dogs can earn even more cash as Cash Cows.
• The model uses only two dimensions – market share and growth rate. This may tempt management to
emphasize a particular product, or to divest prematurely.
Nestle Case Overview
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
• NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large number of co-
packers
• Nestlé India is a vibrant Company that provides consumers in India with products of global standards
• Nestlé’s products include baby food, medical food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks
We are taking these four products of Nestle for Portfolio Analysis using BCG Matrix :
1. Mineral Water
2. Milk Pack
3. Noodles
4. Chocolates/ Juices
Nestle Market Share of Products
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
Mineral Water Milk Pack Noodles Chocolates/Juices
• Market Growth
of Nestle Water
is 85%
• Market Share of
Nestle water is
89%
• Market Growth
of Nestle Milk
Pack is 55%
• Market Share of
Nestle Milk Pack
is 65%
• Market Growth
of Nestle
Noodles is 75%
• Market Share of
Nestle Noodles
is 43%
• Market Growth
of Nestle Juices
is about 40%
• Market share of
Nestle Juices is
38%
Application of BCG on Nestle Products
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
Stars Question Marks
DogsCash Cows
MarketGrowth
Market Share
High Low
HighLow
Conclusion
BCG Matrix
Elements
of BCG
Advantages
Nestle
Case
Nestle
Portfolio
Application
of BCG on
Nestle
Conclusion
From the BCG Matrix we noticed that,
Nestle Mineral water(Stars) is having High Market Growth and High Market share
Nestle Milk Pack(Cash Cows) is having Low Market Growth and High Market share
Nestle Noodles(Question Marks) is having High Market Growth and Low Market Share
Nestle Chocolates/Juices(Dogs) is having Low Market Growth and Low Market Share.
 Nestle Mineral Water requires high funding to fight competition and maintain growth rate. And
hope is that they become next cash cows
 Nestle Milk Pack generates cash in excess of the amount of cash needed to maintain the business
 Nestle Noodles must be analysed carefully in order to determine whether they are worth the
investment required to grow market share
 Nestle Juices division is typically “break even”, generating barely enough cash to maintain the
business’s market share. They are thought to be sold off.
BCG matrix

More Related Content

What's hot

Operation strategy of itc limited
Operation  strategy  of  itc limitedOperation  strategy  of  itc limited
Operation strategy of itc limitedshabistan khan
 
Bcg matrix on parle
Bcg matrix on parleBcg matrix on parle
Bcg matrix on parleRahul Gupta
 
Parle g rural marketing strategy
Parle g rural marketing strategyParle g rural marketing strategy
Parle g rural marketing strategypreethi s
 
Parle g case study
Parle g case studyParle g case study
Parle g case studyNikhil Katte
 
Patanjali Analysis
Patanjali AnalysisPatanjali Analysis
Patanjali AnalysisRohit Garg
 
HUL sales hierarchy FMCG Organisation structure of Sales
HUL sales hierarchy  FMCG  Organisation  structure of Sales  HUL sales hierarchy  FMCG  Organisation  structure of Sales
HUL sales hierarchy FMCG Organisation structure of Sales Manoj Kurup
 
Product mix of reckitt benckiser
Product mix of reckitt benckiserProduct mix of reckitt benckiser
Product mix of reckitt benckiserHarshalPatil242
 
Patanjali's marketing strategy
Patanjali's marketing strategyPatanjali's marketing strategy
Patanjali's marketing strategyRUPESH SINGH
 
Marico(Marketing Strategy-4Ps)
Marico(Marketing Strategy-4Ps)Marico(Marketing Strategy-4Ps)
Marico(Marketing Strategy-4Ps)Tasneem Kausar
 
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.Com
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.ComPorter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.Com
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.ComDr. Angshuman Ghosh
 
Case study Solution on Starbuck’s Company
Case study Solution on Starbuck’s Company Case study Solution on Starbuck’s Company
Case study Solution on Starbuck’s Company Nahid Hossen
 
BCG Matrics of Google
BCG Matrics of GoogleBCG Matrics of Google
BCG Matrics of GoogleMelwin Mathew
 
Flipkart vs amazon vs snapdeal retail management
Flipkart vs amazon vs snapdeal  retail managementFlipkart vs amazon vs snapdeal  retail management
Flipkart vs amazon vs snapdeal retail managementBharat Narayan
 
Dabur Strategy
Dabur StrategyDabur Strategy
Dabur StrategyMurali Raj
 
Marketing plan of sunfeast yippee
Marketing plan of sunfeast yippeeMarketing plan of sunfeast yippee
Marketing plan of sunfeast yippeeAbhishek Dewangan
 
a comparative analysis of Sunfeast Yippee in comparison to others
a comparative analysis of Sunfeast Yippee in comparison to others a comparative analysis of Sunfeast Yippee in comparison to others
a comparative analysis of Sunfeast Yippee in comparison to others Raza Rizvi
 
Porters five forces model on fmcg
Porters five forces model on fmcgPorters five forces model on fmcg
Porters five forces model on fmcgRameez Ahmed
 

What's hot (20)

Operation strategy of itc limited
Operation  strategy  of  itc limitedOperation  strategy  of  itc limited
Operation strategy of itc limited
 
maggie
maggiemaggie
maggie
 
Bcg matrix on parle
Bcg matrix on parleBcg matrix on parle
Bcg matrix on parle
 
Parle g rural marketing strategy
Parle g rural marketing strategyParle g rural marketing strategy
Parle g rural marketing strategy
 
Parle g case study
Parle g case studyParle g case study
Parle g case study
 
Patanjali Analysis
Patanjali AnalysisPatanjali Analysis
Patanjali Analysis
 
HUL sales hierarchy FMCG Organisation structure of Sales
HUL sales hierarchy  FMCG  Organisation  structure of Sales  HUL sales hierarchy  FMCG  Organisation  structure of Sales
HUL sales hierarchy FMCG Organisation structure of Sales
 
Product mix of reckitt benckiser
Product mix of reckitt benckiserProduct mix of reckitt benckiser
Product mix of reckitt benckiser
 
ITC - Marketing Management
ITC - Marketing ManagementITC - Marketing Management
ITC - Marketing Management
 
Patanjali's marketing strategy
Patanjali's marketing strategyPatanjali's marketing strategy
Patanjali's marketing strategy
 
Marico(Marketing Strategy-4Ps)
Marico(Marketing Strategy-4Ps)Marico(Marketing Strategy-4Ps)
Marico(Marketing Strategy-4Ps)
 
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.Com
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.ComPorter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.Com
Porter’S Five Force Model Analysis For Indian Cigarette Industry @ tnmg4u.Com
 
Case study Solution on Starbuck’s Company
Case study Solution on Starbuck’s Company Case study Solution on Starbuck’s Company
Case study Solution on Starbuck’s Company
 
BCG Matrics of Google
BCG Matrics of GoogleBCG Matrics of Google
BCG Matrics of Google
 
Flipkart vs amazon vs snapdeal retail management
Flipkart vs amazon vs snapdeal  retail managementFlipkart vs amazon vs snapdeal  retail management
Flipkart vs amazon vs snapdeal retail management
 
Dabur Strategy
Dabur StrategyDabur Strategy
Dabur Strategy
 
Marketing plan of sunfeast yippee
Marketing plan of sunfeast yippeeMarketing plan of sunfeast yippee
Marketing plan of sunfeast yippee
 
Dabur Case Study
Dabur Case StudyDabur Case Study
Dabur Case Study
 
a comparative analysis of Sunfeast Yippee in comparison to others
a comparative analysis of Sunfeast Yippee in comparison to others a comparative analysis of Sunfeast Yippee in comparison to others
a comparative analysis of Sunfeast Yippee in comparison to others
 
Porters five forces model on fmcg
Porters five forces model on fmcgPorters five forces model on fmcg
Porters five forces model on fmcg
 

Similar to BCG matrix

BCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixBCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixNavneet Dwivedi
 
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
 
BCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXBCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXJagdeepSingh394
 
10 portfolio analysis ppt
10 portfolio analysis ppt10 portfolio analysis ppt
10 portfolio analysis pptbwire sedrick
 
Information about BCG Matrix
Information about BCG Matrix Information about BCG Matrix
Information about BCG Matrix Bajajpankaj
 
BCG matrix /GE9 cell matrix
BCG matrix /GE9 cell matrixBCG matrix /GE9 cell matrix
BCG matrix /GE9 cell matrixParminder Kaur
 
Bcg matrix ( international hrm )
Bcg matrix ( international hrm )Bcg matrix ( international hrm )
Bcg matrix ( international hrm )Diu
 
Bcg matrix - ( international hrm )
Bcg matrix - ( international hrm )Bcg matrix - ( international hrm )
Bcg matrix - ( international hrm )Rk Rocky
 
10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.pptMusangabuEarnest
 
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}
 
Product portfolio decisions
Product portfolio decisionsProduct portfolio decisions
Product portfolio decisionsMohit Sharma
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentationRishi Narula
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentationRishi Narula
 
Boston Consulting Group-MAIN
Boston Consulting Group-MAINBoston Consulting Group-MAIN
Boston Consulting Group-MAINAmrita Gandikota
 

Similar to BCG matrix (20)

BCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share MatrixBCG matrix-Market Growth Share Matrix
BCG matrix-Market Growth Share 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
 
Boston matrix analysis
Boston matrix analysisBoston matrix analysis
Boston matrix analysis
 
BCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIXBCG MATRIX AND GE MATRIX
BCG MATRIX AND GE MATRIX
 
10 portfolio analysis ppt
10 portfolio analysis ppt10 portfolio analysis ppt
10 portfolio analysis ppt
 
Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
Information about BCG Matrix
Information about BCG Matrix Information about BCG Matrix
Information about BCG Matrix
 
BCG matrix /GE9 cell matrix
BCG matrix /GE9 cell matrixBCG matrix /GE9 cell matrix
BCG matrix /GE9 cell matrix
 
Bcg matrix ( international hrm )
Bcg matrix ( international hrm )Bcg matrix ( international hrm )
Bcg matrix ( international hrm )
 
Bcg matrix - ( international hrm )
Bcg matrix - ( international hrm )Bcg matrix - ( international hrm )
Bcg matrix - ( international hrm )
 
BCG Matrix.pdf
BCG Matrix.pdfBCG Matrix.pdf
BCG Matrix.pdf
 
HUL Study
HUL StudyHUL Study
HUL Study
 
10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt10 Portfolio Analysis ppt.ppt
10 Portfolio Analysis ppt.ppt
 
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
 
Product portfolio decisions
Product portfolio decisionsProduct portfolio decisions
Product portfolio decisions
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
Nestle bcg
Nestle bcgNestle bcg
Nestle bcg
 
BCG Matrix
BCG MatrixBCG Matrix
BCG Matrix
 
Boston Consulting Group-MAIN
Boston Consulting Group-MAINBoston Consulting Group-MAIN
Boston Consulting Group-MAIN
 

More from RAHUL KANEKAR

More from RAHUL KANEKAR (12)

Cable Business
Cable BusinessCable Business
Cable Business
 
Heterogeneous network (hetnet)
Heterogeneous network (hetnet)Heterogeneous network (hetnet)
Heterogeneous network (hetnet)
 
CRM CSR network designing
CRM CSR network designingCRM CSR network designing
CRM CSR network designing
 
Airtel
AirtelAirtel
Airtel
 
BSNL
BSNLBSNL
BSNL
 
Mobile Banking
Mobile BankingMobile Banking
Mobile Banking
 
Mobile Sensors
Mobile SensorsMobile Sensors
Mobile Sensors
 
Technological and Cost based comparison of NGPON
Technological and Cost based comparison of NGPONTechnological and Cost based comparison of NGPON
Technological and Cost based comparison of NGPON
 
Is for decision making
Is for decision makingIs for decision making
Is for decision making
 
Gsm
GsmGsm
Gsm
 
Top mnc of india
Top mnc of indiaTop mnc of india
Top mnc of india
 
Mobile phone etiquette
Mobile phone etiquetteMobile phone etiquette
Mobile phone etiquette
 

Recently uploaded

Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 

Recently uploaded (20)

Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 

BCG matrix

  • 1. Presentation on PORTFOLIO ANALYSIS- BCG MATRIX PRESENTED BY RAHUL KANEKAR
  • 3. • BCG Introduction • Elements of BCG • Advantages and Limitations • Nestle Case • Nestle Portfolio • Application of BCG on Nestle • Conclusion BCG Matrix – Introduction
  • 4. BCG Matrix – Introduction BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion • BCG Matrix is also known as growth share matrix (aka Product Portfolio Matrix) • It is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyse their business units • It help corporations to analyse their business units, that is, their product lines • This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis • The BCG-Matrix is helpful for managers to evaluate balance in the companies' current portfolio in the form of Stars, Cash Cows, Question Marks and Dogs. • BCG Matrix is constructed by taking Growth on one axis and relative market share of the portfolio on another axis.
  • 5. Different Elements of BCG Matrix BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion •Products which require less money to maintain but yield high profitsCash Cow •High potential, Relative Market share low but future is brightStars •Consuming lot of resources with little growth Question Mark •Definite underperformers, low market share and low growthDog Hang on to these and nurture them Invest in this product Examine closely either dump or convert into star Dumped
  • 7. Advantages & Limitations of BCG Matrix BCG Matrix Elements of BCG Advantages & Limitations Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion Advantages: • BCG-Matrix is applicable to large companies that seek volume and experience effects • The model is simple and easy to understand • It provides a base for management to decide and prepare for future actions. • If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell new products at a price that is low enough to get early market share leadership. Once it becomes a star, it is destined to be profitable. Limitations: • It neglects the effects of synergies between business units. • High market share is not the only success factor. • Market growth is not the only indicator for attractiveness of a market. • Sometimes Dogs can earn even more cash as Cash Cows. • The model uses only two dimensions – market share and growth rate. This may tempt management to emphasize a particular product, or to divest prematurely.
  • 8. Nestle Case Overview BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion • NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large number of co- packers • Nestlé India is a vibrant Company that provides consumers in India with products of global standards • Nestlé’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks We are taking these four products of Nestle for Portfolio Analysis using BCG Matrix : 1. Mineral Water 2. Milk Pack 3. Noodles 4. Chocolates/ Juices
  • 9. Nestle Market Share of Products BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion Mineral Water Milk Pack Noodles Chocolates/Juices • Market Growth of Nestle Water is 85% • Market Share of Nestle water is 89% • Market Growth of Nestle Milk Pack is 55% • Market Share of Nestle Milk Pack is 65% • Market Growth of Nestle Noodles is 75% • Market Share of Nestle Noodles is 43% • Market Growth of Nestle Juices is about 40% • Market share of Nestle Juices is 38%
  • 10. Application of BCG on Nestle Products BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion Stars Question Marks DogsCash Cows MarketGrowth Market Share High Low HighLow
  • 11. Conclusion BCG Matrix Elements of BCG Advantages Nestle Case Nestle Portfolio Application of BCG on Nestle Conclusion From the BCG Matrix we noticed that, Nestle Mineral water(Stars) is having High Market Growth and High Market share Nestle Milk Pack(Cash Cows) is having Low Market Growth and High Market share Nestle Noodles(Question Marks) is having High Market Growth and Low Market Share Nestle Chocolates/Juices(Dogs) is having Low Market Growth and Low Market Share.  Nestle Mineral Water requires high funding to fight competition and maintain growth rate. And hope is that they become next cash cows  Nestle Milk Pack generates cash in excess of the amount of cash needed to maintain the business  Nestle Noodles must be analysed carefully in order to determine whether they are worth the investment required to grow market share  Nestle Juices division is typically “break even”, generating barely enough cash to maintain the business’s market share. They are thought to be sold off.