bcg growth مهم
TRANSCRIPT
BCG
The Boston Consulting Group’s Growth-Share MatrixPresented by:Dr Abdalla Sobhy
Presentation Outline History of BCG Matrix Brief explanation of portfolio analysis BCG Matrix construction Strategy recommendations Evaluation of the tool
History of the BCG Matrix created by Bruce Henderson First implementation in 1969
by Boston Consulting Group Has many names B-Box,
B.C.G. analysis, BCG-matrix, Boston Box
Basis of the BCG Portfolio Matrix
Time
Introductory Phase “?”
Growth Phase “Star”
Sales Volume
Mature Phase “Cash Cow”
Decline Phase “Dog”
BCG Matrix Construction Internal measure: Relative market
share External measure: Market growth
BCG Matrix Format Vertical Axis = Relative Market Growth
Split at 10% by a horizontal line Horizontal Axis = Relative Market Share
Split at 1x by a vertical line Creates four quadrants in which individual SBUs are
positioned as bubbles Bubble size = SBU’s total revenue
20%-18%-16%-14%-12%-10%- 8%- 6%- 4%- 2%- 0M
arke
t Gro
wth
Rat
e
10x 4x 2x 1.5x 1x Relative Market Share
.5x .4x .3x .2x .1x
Dogs 87
3 ?Question marks? ?
2
1
Cash cows
6
Stars
5
4
The BCG Matrix
High Low
High
Low
Product Sales Growth Rate
Relative Market Share
Cash Cow business units with high market share
in a slow-growing industry. generate cash in excess of the amount
of cash needed to maintain the business.
They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.
Star Strategies Business units with a high market share in
a fast-growing industry. The hope is that stars become the
next cash cows. Sustaining the business unit's market
leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader.
When growth slows, if they have been able to maintain their category leadership stars become cash cows, else they become dogs due to low relative market share.
Problem Child or ? Low market share in expanding industry Needs substantial cash to improve its position A question mark has the potential to gain
market share and become a star, and eventually a cash cow when the market growth slows.
If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines.
Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.
Dogs or pets Low market share in a mature or
declining industry Slow progress on experience curve
(barely enough cash to maintain the business's market share
Cost disadvantages and few growth opportunities
should be sold off. Concentrate on niches requiring
limited effort
Strategy Recommendations Investment Further Growth Maintain Market Position
Cash flow Self-sustaining: Fund their own growth Require funds from other SBUs (Cash Cows)
Assure the future of the company Grow into Cash Cows
Strategy Recommendations Investment Increase market share Selectively develop into Stars
Cash Flow Require funds from other SBUs (Cash Cows)
Unrealized future opportunities
Strategy Recommendations Investment Maintain market share Maintain capacity
Cash Flow Positive cash flow Provides funding to support Stars and “?”
No potential for profit growth
Strategy Recommendations Investment
Reduce capacity to free up resources Cash Flow
Goal of Positive Cash Flow Negative Cash Flow = burn
No real growth opportunities
Evaluation of BCG Matrix: Cons Oversimplifies complex decisions Only 2 factors considered = creates risk Uncertainty in market and SBU definition Only considers current businesses no dynamics Does not recognize possible synergies between
SBUs Can fall prey to the “GIGO” syndrome
Evaluation of BCG Matrix: Pros Simple and rapid Solid basis for decision-making Good measurability of market share and
growth Provides information about efficient
resource allocation within the organization
Generator for strategic options