BCG Matrix
BCG Matrix
Product
Relative Market
Share
Market
Growth
Classification
Note
D
2
Leader
3%
Low
Cash Cow
Generates more cash than needed to maintain business. Requires frequent “milking” and very little investment.
A
3
Leader
20%
High
Star
Requires a high level of funding to battle competitors and maintain growth rate. When industry slows, has potential to become cash cow if market share is retained.
C
1
Co-Leader
25%
High
C
1
Co-Leader
25%
High
Question Mark
Potential to gain market share and becomes stars and eventually cash cows if market growth slows. Starting point for most products.
E
.8
Non-Leader
30%
High
B
.5
Non-Leader
5%
Low
Dog
Barely generates enough cash to maintain its business share.
BCG Matrix Applied to the Sports Industry
Classification
Product Line
Cash Cow
Tennis Racquets
Star
Tennis Strings
Question Mark
Tennis Shoes
Dog
Tennis Balls
Analysis
Babalot is a French company that was founded in 1875. From its initiation until 1994, its business focus was on making and selling strings. In 1994, it became a “total tennis” company, adding tennis racquets to its portfolio. In 2001, they launched their range of tennis balls and finally in 2003, they introduced their first tennis shoe. Throughout history, many of the most famous tennis players have endorsed their products including Arthur Ashe, Bjorn Borg, Carlos Moya, Andy Roddick, and Pete Sampras.
Tennis Racquets – Cash Cow
In 2010, Babalot became the product leader in the market with a 34.3% share. This is quite remarkable considering in 2006, they were outside the top 5 and Wilson had a market share of 36%. They virtually come out of nowhere to achieve a huge share of the tennis racquet business. Their strategy, invest money in grassroots marketing, which meant putting their racquets in the hands of young players like Rafa Nadal, instead of established veterans. Since tennis players tend to be loyal to a brand once they have established a relationship, Babalot’s
Product
Relative Market
Share
Market
Growth
Classification
Note
D
2
Leader
3%
Low
Cash Cow
Generates more cash than needed to maintain business. Requires frequent “milking” and very little investment.
A
3
Leader
20%
High
Star
Requires a high level of funding to battle competitors and maintain growth rate. When industry slows, has potential to become cash cow if market share is retained.
C
1
Co-Leader
25%
High
C
1
Co-Leader
25%
High
Question Mark
Potential to gain market share and becomes stars and eventually cash cows if market growth slows. Starting point for most products.
E
.8
Non-Leader
30%
High
B
.5
Non-Leader
5%
Low
Dog
Barely generates enough cash to maintain its business share.
BCG Matrix Applied to the Sports Industry
Classification
Product Line
Cash Cow
Tennis Racquets
Star
Tennis Strings
Question Mark
Tennis Shoes
Dog
Tennis Balls
Analysis
Babalot is a French company that was founded in 1875. From its initiation until 1994, its business focus was on making and selling strings. In 1994, it became a “total tennis” company, adding tennis racquets to its portfolio. In 2001, they launched their range of tennis balls and finally in 2003, they introduced their first tennis shoe. Throughout history, many of the most famous tennis players have endorsed their products including Arthur Ashe, Bjorn Borg, Carlos Moya, Andy Roddick, and Pete Sampras.
Tennis Racquets – Cash Cow
In 2010, Babalot became the product leader in the market with a 34.3% share. This is quite remarkable considering in 2006, they were outside the top 5 and Wilson had a market share of 36%. They virtually come out of nowhere to achieve a huge share of the tennis racquet business. Their strategy, invest money in grassroots marketing, which meant putting their racquets in the hands of young players like Rafa Nadal, instead of established veterans. Since tennis players tend to be loyal to a brand once they have established a relationship, Babalot’s