Corporate Strategy & Innovation
Case study: United Drinks – BCG Matrix
Lecturer: Pr. Dr. Broustail Joel
Group:
1. NGUYEN THI THU HIEN
2. PHAN DANG THUY LINH
3. LE QUOC DANG
Ho Chi Minh City, May 2015
CONTENTS
1. BACKGROUND AND OUR UNDERSTANDING OF THE CASE STUDY 1
2. ANALYSIS AND COMMENTS 3
2.1 Set up a BCG1 Matrix 3
2.2 BCG1 Matrix recommendations 4
2.3 Recommendations or requests for further analysis and additional information 4
Appendix 11
Enclosure 11
1. BACKGROUND AND OUR UNDERSTANDING OF CASE STUDY
United Drinks portfolio of products is currently as follows:
Market growth
Market share
Market share of largest competitor
Relative market share
Contribution to the Turnover
Pastis
1%
52%
21%
2.48
29%
Top Pastis
2%
20%
30%
0.67
10%
Alcohol Free Pastis
2%
20%
30%
0.67
12%
Bio Drink (Anis + Chlorophyll)
15%
35%
30%
1.17
8%
Soda
9%
9%
27%
0.33
21%
Mineral Water
8%
10%
32%
0.31
5%
Drinking Water
10%
21%
33%
0.64
6%
Glass Bottles
1%
12%
24%
0.50
9%
Pastis is a very popular alcoholic refreshing drink made out of Anis, a Mediterranean root of a medicinal plant. The GDP growth rate is 4 %.
2. ANALYSIS AND COMMENTS
2.1 Set up a BCG1 Matrix
.2 BCG1 Matrix recommendations
It is obvious that United Drink Co needs to consider all the figures about the market, growth rate, etc. to re-systematize the resources of its diverse products in order to utilize the revenues. Nevertheless, an important point should be noted is that, in an overall picture, the market growth of all products is positive. However, owing to the 4 % of GDP growth rate, those products which have the lower growth rate than GDP will be real negative. The reason is that this growth rate in terms of % is used as indicator to look the growth of such data (e.g.: GDP, population, price, sales, etc.). It will show the difference proportion between current value and past value. If this figures is positive, the data is growing. If the growth rate is