bcg+matrix+bmw
TRANSCRIPT
Boston matrix on BMWcomparative portfolio analysis
By Becky, Lily and Owen
Boston MatrixWhat is Boston Matrix?
• - categorizing products as question marks, stars, cash cows or dogs.
• - examines if BMW has a balanced portfolio • - interrelated with the product life cycle
Stars: need heavy investment to sustain growth
Question marks: have potential
cash cows: successful products with relatively little need for investments
dogs: rarely worth investing in
BMW •- Entering China in 2000
•- Setting factory in 2003
•- BMW’s current market
•in China is still relatively
•high
High market High market shareshare Low market shareLow market share
High market High market growthgrowth
STARSSTARSBMW 1 SeriesBMW 1 SeriesBMW 5 SeriesBMW 5 SeriesBMW X SeriesBMW X Series
QUESTION QUESTION MARKSMARKS
Low market Low market growthgrowth
CASH COWSCASH COWSBMW 3 SeriesBMW 3 SeriesBMW 7 SeriesBMW 7 Series
DOGSDOGSBMW 6 SeriesBMW 6 Series
BMW’s Stars- 1 series
BMW 1 Series:
(High market share)BMW entered this particular market segment earlier than its competitors such as Benz B series and Audi A3.
(High market growth)This market segment targets at people who cannot afford sport cars
BMW’s stars - 5 seriesBMW 5 series
(high market share) its new BMW 5 series is extremely successful, its market share
growing from 15% to 28%.(high market growth) this market segment is the major segment of the Chinese luxury
car industry.
BMW’s stars- X series
BMW X series:
(high market share)mainlydue to its brand loyalty and brand awareness
(high market growth)according to a survey,many chinese like suv
BMW’S CASH COW - 3 SERIES
BMW 3 SERIES
(HIGH MARKET SHARE) 23.4% MARKET SHARE IN 2009, VERY CLOSE TO ANOTHER MAIN COMPETITOR, BENZ.
(LOW MARKET GROWTH) THE MARKET IS SATURATED
BMW’S CASH COW- 7 SERIESBMW’S CASH COW- 7 SERIES
• 7 SERIES
• (High market share) BMW sold 26553 BMW 7 series in 2010 And China is BMW 7 Series’s second largest market.
• (low market growth) not many people in china can afford it, and people who can afford it would like to buy a better car such as Bentley. according to the porter’s generic strategy, BMW 7 Series is not in a good position.
BMW’S DOG- 6 SERIESBMW 6 Series
BMW 6 has a low market share and a low market growth, its purpose is mainly to build brand image. Its competitors such as Porsche 911 and Benz AMG are much stronger than BMW 6.
BMWBMW’’S PORTFOLIOS PORTFOLIO
BMW’s product portfolio is quite balanced currently.
Although according to the boston matrix, it doesn’t have any question mark products, its products are not situated in the same grid
Some of BMW cars perform really well, while some cars perform quite poorly
IN ORDER FOR BMW TO OPTIMIZE FUTURE GROWTH
AND PROFITS......In 2010, BMW has generated more profits in China(168998 vehicles) than in any other countries.
BMW can try to lower the price, in order to attract more customers.
BMW is now introducing many new products, if its new products entered China earlier, it can help not only the sales
THANK YOU FOR LISTENING!