The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970’s. It is based on the observation that a company’s business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor‚ hence the name "growth-share". The growth-share matrix thus maps the business unit positions within these two important determinants of profitability
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Nutrition‚ Health & Wellness - New Product Development at Nestle Introduction Nestlé is the world’s leading food company. In recent years it has focused on becoming a nutrition‚ health and wellness company. This is the idea of supporting people to lead healthier lives. Nestlé is home to a wide range of brands including Maggi. This is a brand that is aimed at chefs and the catering trade. This is called the ’foodservice’ sector. Market research Nestlé found that sales of the Maggi brand had decreased
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The following diagram depicts the BCG Matrix where the main brands of the Estee Lauder Company are depicted as stars‚ cash cows‚ dogs or question marks. As the diagram shows that the company has a significant number of big brands in the question mark category the future prospective growth for the company can be very good. BCG MATRIX | STARS | QUESTION MARKS | Good Skin Labs | American Beauty | Grass Roots Research Labs | Estee Lauder | Sean John | Flirt! | Clinique | MAC Cosmetics |
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In 2006 Haier was ranked the 6th largest maker of large kitchen appliance. Haier had 4% global market share and strong positions in the production of washing machine and refrigerators. Haier became successful after the arrival of Zhang as a CEO in 1985. After that Haier increased its revenue from RMB 3.48 million to RMB 104 million. Haier transformed into a group of 240 plants and companies‚ having more than 50‚000 employs. Haier has moved to this position in just two decades and the average age
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Haier Group: Chinese Company That Created A Global Brand Haier Group (“HG”) is a leading Chinese international manufacturer of large and small appliances‚ including refrigerators‚ freezers‚ conditioners‚ dishwashers and laundry products to cell phones and televisions. HG is not only known around the world for quality and innovation but as an early mover outside of the Chinese marketplace; it was able to implement a market strategy to take away market share from large manufacturers on their own
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BCG MATRIX FOR NESTLÉ BANGLADESH LIMITED SBUs INTRODUCTION Strategic business unit (SBUs) a single business or collection of related business that can be planned separately from the rest os company‚ with its own set of competitors and a manager who is responsible for strategic planning and profit performance. Question Marks- Build Strategy‚ Stars-Hold Strategy‚ Cash Cows-Harvest Strategy‚ Dogs-Divest Strategy. In the commercial arena‚ the choice of an effective strategy is perhaps the most important
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INTRODUCTIONBorn out of Qingdao Refrigerator Factory in 1984‚ the Haier (pronounced "high-er") Group is China’s largest home appliance manufacturer (Wang and Ong 2007)‚ and the world’s fourth largest white goods manufacturer (Chen 2008). Haier was ranked first among China’s Top 10 Global Brands by the Financial Times in 2005 (Haier’s company facts 2008). It was also ranked 86th among the world’s 500 Most Influential Brands by World Brand Lab in 2006 and is the only Chinese brand to be among the
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BCG matrix The Boston Consulting Group matrix allows a multinational company to manage its portfolio by studying the relative market share and the industry growth rate of each division relative to all other divisions in the organization. It consists of 4 basic elements: 1. Question Marks(?)- falls in Quadrant I that has a low relative market share position but compete in a high-growth industry. 2. Stars- falls in Quadrant II that has a high relative market share and even has a high-growth industry
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Question 1 1.1 The BCG Matrix is still viable and usable in today’s world and is still a significant tool used by businesses. The BCG Matrix looks at the impact an investment will have on the company. The BCG Matrix works on two axis‚ Namely the vertical and horizontal axis. The vertical axis will indicate the growth rate and the horizontal represents the market share. The matrix assumes that a company must focus on its mature markets and form a strong competitive position in the market ultimately
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Industry Attractiveness BCG In star‚ the technology system falls under the star box‚ and they are the primary activities that KPJ healthcare should invest its money‚ because stars are expected to become cash cows and generate positive cash flows. So‚ to maintain the star position or else to cash cow‚ KPJ healthcare need to choose any of these strategic choices such as vertical integration‚ horizontal integration‚ market penetration‚ market development‚ product development. In cash cows are the most
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