The BCG matrix method is based on the product life cycle theory that can be used to determine 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
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QUESTION 1 In a BCG Matrix‚ all divisions are called question marks‚ stars‚ cash cows or dogs. Define each of these terms. Question Marks division is Quadrant I have a low relative market share position‚ yet they compete in a high-growth industry. Generally these firms’ cash needs are high and their cash generation is low. These businesses are called question marks because the organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration‚ market development
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their product is better than their competitors? Who is their target audience? How do the pharmaceutical companies protect their new drug investment? In 1998 Celebrex (celecoxib) was approved by the FDA. Through several mergers and acquisitions‚ Pfizer became the owner of Celebrex in 2004. (en.Wikipedia.org‚ 2013) In 1999 Merck and Co. Inc. introduced a new drug to treat arthritis. It was called Vioxx (rofecoxib). The drug was marketed worldwide. It was marketed in 80 countries and used by 84
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Emerging Markets is used to describe a country in the process of rapid growth and industrialisation Opportunities- Strong Economic Growth /Rising consumer incomes and growing ‘middle-classes’/Opportunities for joint ventures with local businesses Threats- Culture/varying customer needs/Difficult to protect ideas from competition due to inadequate laws/Infrastructure could be poor‚ making distribution and marketing difficult The US soft drinks giant announced a 6% rise in operating revenue to $11
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TRANSCOM FOOD LIMITED Transcom group started its journey in 1885 through tea plantations. This diversified business house now has interests in many segments in the industrial and service sectors in Bangladesh. Some of the brands managed by the group include: Pepsi‚ 7-Up‚ Mirinda‚ KFC‚ Pizza Hut‚ Phillips N.V‚ Whirlpool‚ Maybeline‚ Garnier‚ Heinz‚ Frito-Lay‚ Lindt‚ Servier‚ Novo-Nordisk. Other aspects of the business include: Pharmaceuticals (Eskayef Bangladesh Ltd. www.skfbd.com) Newspapers (Prothom
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Starbucks - Bear spread Nike - Bull spread Pfizer - Butterfly‚ Straddle & Strangle For Starbucks we bet on down-move from the stock‚ which at that time (March 11th) had a 4-month average price of $75.23 and a current price of $75.03. We built a Bear Put Spread with a long position on 77.5-strike put and a short position in a 70-strike put. We
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2.1 BCG Matrix Analysis The Boston Consulting Group’s growth-share matrix is the model of analysing the company’s portfolio of SBUs. The following figure plots the position of Virgin’s SBUs. 2.2 Implications of BCG Matrix Analysis on strategy development Portfolio analysis has three uses. First‚ a business can assess the balance of its portfolio… Second‚ the portfolio provides a framework for strategic market planning… Third‚ each SBU should have a clear objective appropriate to its portfolio
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necessitate consideration of factors in the firm’s external environment: Strategic focus in an organization involves orienting its internal environment to the changes of external environment. Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG‚ USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different
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of Emirates Airline‚ one of the world’s famous airlines‚ mainly focusing on passenger services will be evaluate by their marketing orientation by marketing management orientation‚ and two productive marketing matrixes‚ Ansoff (Ansoff‚ 2011a) and BCG (BCG‚ 2011a). 1.1 Mission Emirates mission is to commit the highest standards in everything they do. The recent promotion slogan is “Keep discovering” well describe their objective. “The Emirates Group has spread its wings into every aspect of travel
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9.0 Bibliography 17 List of figures: Page Nike logo 2 Adidas logo 2 Air Jordan 3 Products of Nike in the BCG Matrix 4 Adidas Samba 5 German National Team wearing Adidas in the 1954 football world cup 6 Products of Adidas in the BCG Matrix 6 Copa Mundial 7 Adidas Predator Mania 7 Fig.1) Cristiano Ronaldo 8 Fig.2)
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