...Fachbereich Wirtschaft – Vor- und Nachteile der Marktwachstums-Marktanteils-Matrix der Boston Consulting Group - Hausarbeit im Rahmen des Moduls Schlüsselkompetenzen I - vorgelegt von: Casper Nowakowski Emdenerstraße 34 48155 Münster Matrikel-Nr. 644059 Referent: Dipl.-Betriebsw. Tobias Kesting MBA Abgabedatum: 28.Oktober.2010 Inhaltsverzeichnis Abbildungsverzeichnis Abkürzungsverzeichnis 1. Einleitung 2. Grundlagen der BCG-Matrix 2.1 Rahmenbedingungen und Begriffsdefinition Hintergrund (1) Einsatzort und Herkunft 2.2 Aufbau der BCG-Matrix (2) 3. Kritische Auseinandersetzung mit der BCG-Matrix 3.1 Vorteile (1,5) 3.2 Nachteile (1,5) 4. Fazit Quellenverzeichnis Abbildungsverzeichnis Abkürzungsverzeichnis 1. Einleitung Ende der sechziger Jahre entwickelte die Boston Consulting Group für General Electric ein absatzmarktorientiertes Portfoliokonzept, welches Marktwachstums-Marktanteils-Portfolio oder auch BCG-Matrix genannt wird. Die Portfolio-Analyse im Allgemeinen und die BCG-Matrix im Besonderen sind in der Praxis und Lehre der strategischen Planung schon seit vielen Jahren weit verbreitet. Empirische Studien belegen auch für den deutschsprachigen Raum die dauerhaft hohe Bedeutung für die Praxis, so dass die BCG-Matrix als eine Standardmethode der strategischen Planung bezeichnet werden kann. In der Regel stellen entsprechende Lehrbücher die BCG-Matrix als klassischen, etablierten Ansatz vor. Sie listen nach der Beschreibung des...
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...International Marketing – 3rd Assignment Portfolio Analysis Region 4 (Italy) June 2011 1 Portfolio Analysis – The BCG Matrix The BCG Matrix is a market growth-market share matrix developed by the Boston Consulting Group, which is used to support strategic decisions in order to optimize a business portfolio with regard to new, old, innovative or established products and/or strategic business units (SBU). Its underlying theories are the experience curve as well as the product life cycle. Having classified its strategic business units, a company can develop its individual strategies for each of these SBUs. Future decisions include how to allocate investments on the SBUs, analysis about whether the respective products are still profitable or should be “killed” or given away and last but not least the need for developing new products or SBUs. The findings of the PIMS database (Profit Impact on Market[ing] Strategy) support the BCG matrix . Source: Kotler/Bliemel, Marketing Management, 12th Edition 2007, p. 96-103 Turnover / Profit Product Life Cycle Unit Cost Experience Curve Market Growth Rate Indroduction Growth Maturity Decline Withdrawel ? 2 1 Product Life Cycle of a Successful Product Product Life Cycle of an Unsuccessful Product Relative Market Share 1 Profit 2 Time Cumulative Output ? STAR: SBU with high market share in a growing market Costs of such business units are usually decreasing over time and at a faster rate...
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...1 of 6 ANZMAC 2009 Adjusting the BCG Matrix for the Recession Avichai Shuv-Ami, The College of Management aviami@colman.ac.il Abstract The idea of the BCG matrix is that managers are able to evaluate their businesses using objective criteria and to develop strategies suitable to the business' particular situation. The BCG matrix can be used for portfolio analysis in times of economic crisis, but adjustments must be made. The first adjustment involves adding two more criteria – profit margins and cash flows. The second adjustment involves redefining the breaking points between the high and low of the relative market share and market growth rate averages of the industry and/or the company. The third adjustment is to add two more strategies – freeze and cut. Using all these adjustments provides better flexibility for BCG matrix analysis in a shrinking economy and recession. 1 ANZMAC 2009 Page 2 of 6 Adjusting the BCG Matrix for the Recession Introduction The BCG matrix has been used in the real world in a variety of ways for such business analysis tasks as analyzing value, business strategy toward customers, segmentation (Dibb 1995) and brand portfolio analysis. As a result of the current financial crisis, which has affected strategic market planning decisions, businesses and practitioners are using the BCG (Boston Consulting Group) matrix in a flexible manner. This paper provides several adjustments to the BCG matrix in order to adjust it to the current economic...
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...The Boston Consulting Group (BCG) Matrix Autonomous divisions (or profit centers) of an organization make up what is called a business portfolio. When a firm's divisions compete in different industries, a separate strategy often must be developed for each business. The Boston Consulting Group (BCG) Matrix and the Internal-External (IE) Matrix are designed specifically to enhance a multidivisional firm's efforts to formulate strategies. The BCG Matrix graphically portrays differences among divisions in terms of relative market share position and industry growth rate. The BCG Matrix allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry growth rate of each division relative to all other divisions in the organization. Relative market share position is defined as the ratio of a division's own market share in a particular industry to the market share held by the largest rival firm in that industry. For example, in Table 6-4, the relative market share of Ocean Spray premium non-carbonated beverage is 14.7/40.5 = 0.36 and Sony's market share in the music industry is 16/27 = 0.59, and the new Hilton-Promus hotel company's market share is 290,000/528,896 = 0.55. TABLE 6-4 A. Market Share of Premium Non-carbonated Beverages BRAND MARKET SHARE IN 1999 % CHANGE IN SHARE FROM 1998 Snapple 40.5 % 3.7 96 Ocean Spray 14.7 -2.9 Arizona 13.7 -2.3 Lipton 10.8 -1.3 SoBe 9...
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...Amazon is a Fortune 500 e-commerce company based in Seattle, WA. Amazon was one of the first big companies to sell goods over the Internet. Amazon.com was started by Jeff Bezos in 1994. At the time, his company was run completely from his garage in Bellevue, Washington. The company began as an online bookstore. In the first two months of business, Amazon sold to all 50 states and over 45 countries. Within two months, Amazon's sales were up to $20,000/week. Amazon started out as an online bookstore and then quickly diversified by adding other items, such as VHS tapes and DVDs, music CDs, software, video games, electronics, MP3s, clothing, furniture, toys and even food items. After conducting my research I am rating Amazon as a STAR in the BCG matrix. Amazon is a well establish company that has great name recognition. The name AMAZON is not by mistake or a shot in the dark. The founder Jeff Bezos wanted a name for his company that began with "A" so that it would appear early in alphabetic order and first in internet searches. He began looking through the dictionary and settled on "Amazon" because it was a place that was "exotic and different" just as he planned for his store to be, and he believed it was the biggest river in the world, and he planned to make his store the biggest in the world. That leads me to my next reason for listing Amazon as a STAR. High market share and high market growth. By 2016 Amazon will have a market share of 20.6% of all eCommerce (according to an analysis...
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...BCG Matrix Model BCG Matrix Model The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor. When should I use the BCG matrix model? Each product has its product life cycle, and each stage in product's life-cycle represents a different profile of risk and return. In general, a company should maintain a balanced portfolio of products. Having a balanced product portfolio includes both high-growth products as well as low-growth products. A high-growth product is for example a new one that we are trying to get to some market. It takes some effort and resources to market it, to build distribution channels, and to build sales infrastructure, but it is a product that is expected to bring the gold in the future. An example of this product would be an iPod. A low-growth product is for example an established product known by the market. Characteristics of this product do not change much, customers know what they are getting, and the price...
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...BCG-MATRIX Inhalt 1. Vorwort 3 2. Ziel und Zweck der BCG-Matrix 3 3. Die BCG-Matrix – Ein Portfolioanalyse-Instrument 4 4. Theoretische Fundierung 5 5. Aufbau der Matrix 7 6. Durchführung der BCG-Matrix-Analyse 8 6.1 Schritt 1: Abgrenzung der Geschäftseinheiten 8 6.2 Schritt 2: Beurteilung der Marktattraktivität 8 6.3 Schritt 3: Beurteilung der Position der Geschäftseinheit 9 6.4 Schritt 4: Beurteilung der Leistung der Geschäftseinheit 9 6.5 Schritt 5: Analyse anhand der 4-Felder-Matrix 11 6.5.1 Question Marks 11 6.5.2 Stars 12 6.5.3 Cash Cows 13 6.5.4 (poor) Dogs 13 7. Wie können Unternehmen vom BCG-Konzept profitieren? 14 8. Vor- und Nachteile der BCG-Matrix 15 8.1 Vorteile 15 8.2 Nachteile 16 9. Allgemeine Kritik betreffend der Anwendbarkeit der Portfolioanalyse im heutigen Businessumfeld 17 10. Schlusswort 18 11. Abbildungsverzeichnis 19 12. Literaturverzeichnis 20 Vorwort Die Geschichte lehrt, dass in der Mitte des 20. Jahrhunderts sich immer mehr und mehr Unternehmen einer, mit konventionellen Mitteln, kaum mehr beherrschbaren Komplexität in der Unternehmensführung gegenübergestellt sahen. Schneller wachsende Märkte, die aufkommende Globalisierung und der immer stärker werdende Konkurrenzkampf waren mitunter Gründe dafür. Eine Vielzahl an strategischen Planungsinstrumenten wurde zur Unterstützung im Umgang mit dieser Komplexität konzipiert. Speziell die Portfolio-Konzepte, welche an Markowitzs finanztheoretische Portefeuille-Theorie...
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...Nike BCG Matrix Nike Corporation is a Fortune 500 company, founded in 1964 and listed on the NYSE as NKE. Headquartered in Beaverton, Oregon, Nike is a proven leader in the sports equipment, apparel and athletic shoe industries. As of 2013, Nike employees more than 44,000 people worldwide. The brand portfolio, in addition to a wide variety of Nike premium products for leisure and sports activities, includes: Cole Haan, Converse, Umbro, Ltd., Hurley and Nike Golf. Nike contracts with more than 800 retail outlets globally, promoting exclusive lunarite foam and flywire technology in brand items. Annual sales exceed $30 billion. The business income is heavily dependent on the shoe market and an overseas workforce. Nike is known as a fashion brand, worn by individuals for many occasions outside of sports activities. However, with its mission to bring innovation and inspiration to all athletes throughout the world, Nike has a strong presence in world championship sports competitions, celebrity and community sponsorships as well as numerous athletic wear eShops. On the BCG Matrix, based on an economic index rating, Nike is considered a Cash Cow. The Nike BCG Matrix also indicates that the company portfolio is established and can benefit from economies of scale, which means mass output or expansion with lower production costs and a bigger is better philosophy. Nike has over 765 factories and 1,000,000 employees worldwide. Only 40 of these factories are in the United States and some...
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...Нов Български университет Магистърска програма „Бизнес администрация“ Цветелина Иванова Гудева Фак.№ F66452 Самостоятелна работа по Мениджмънт МВАМ 022/037 PESTE анализ и BCG – матрица на фирма „Кенди“ ООД Съдържание: I. Кратка характеристика на фирмата II. Стратегически анализ на факторите на външната макросреда и влиянието, което те оказват върху отрасъла и бизнеса – PESTE 1. Политически и глобални фактори 2. Икономически фактори 3. Социални идемографски фактори 1. Качество на живот 4. Технологични фактори 5. Екология III. BCG – матрица 1. Анализ на BCG - матрица IV. Обобщение V. Литература I. Кратка характеристика на фирмата Фирма КЕНДИ ООД основана през 1992г. Правната ѝ форма е дружество с ограничена отговорност, с основен капитал 5000 лв. Тя се занимава с производството на безалкохолни напитки STEP, витамини SUPRAVIT, бульони CHEF'S BEST, подправки, фиксове и сухи супи PICANTINA и подсладители KENDY. В настоящия проект ще бъде разгледана дейността на фирмата от гледна точка на разтворимите безалкохолни напитки. II. Стратегически анализ на факторите на външната макросреда и влиянието, което те оказват върху отрасъла и бизнеса- PESTE PESTE анализът разглежда...
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...Cassie Cage GP210: American Government Instructor: Jonathan Dolen Dec. 11, 2015 Week 2 Assignment: The Nine Members of the United States are; 1.) Karan, Elena 2.) Alito, Samuel A., Jr. 3.) Roberts, John G., Jr. 4.) Breyer, Stephen G. 5.Sotomayor, Sonia M. 6.) Ginsburg, Ruth Bader 7.) Thomas, Clarence 8.) Kennedy, Anthony M. 9.) Scalia, Antonin 2. The Defense of Marriage Act (DOMA) enacted in 1996 states that, for the purposes of Federal Law, the words “marriage” and “spouse “ refer to legal unions between one man and one woman., Since some states have allowed same sex marriages. The Federal Government ruled DOMA unconstitutional under the 5th Amendment. According to the article, Edith Windsor and Thea Syper were married in Toronto, Canada. They moved to New York where the stated recognized same sex marriages. Thea Syper died and left her estate to her spouse Edith Windsor. However, the Federal Government taxed the estate for $363,000 due to their marriage not being recognized by Federal Law, had the marriage been recognized the estate would have qualified for a marital exemption and not taxes exposed. 3. The District Court held thhat DOMA. Was unconstitutional . The U. S. Supreme Court of Appeals for the Second District Affirmed. This case impacts the lives, of Americans due to some Americans do not agree with same sex marriages and does not care to see it. Christians that believe that God made marriage for a man and a woman will not like it. This Case impacts Americans...
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...Comparing the BCG Matrix with the McKinsey 7S model 1 Structure STRUCTURE ........................................................................................................................................ 2 INTRODUCTION ................................................................................................................................. 3 BOSTON CONSULTING GROUP (BCG) GROWTH MATRIX ................................................... 3 COMPOSITION AND FRAMEWORK ....................................................................................................... 3 APPLICATION ....................................................................................................................................... 3 EXAMPLE APPLICATION: JUWI ............................................................................................................ 3 WEAKNESSES AND STRENGTHS OF THE BCG MATRIX ....................................................................... 4 THE MCKINSEY 7S MODEL ............................................................................................................ 5 COMPOSITION AND FRAMEWORK ....................................................................................................... 5 APPLICATION ....................................................................................................................................... 7 EXAMPLE APPLICATION: JUWI ..............................................................
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...reflecting their individual analysis to corporate strategy. The group will then put reports together to make a single portfolio of the different corporate portfolio framework analyses. Along side the written report the group will also work together to produce a presentation which will focus on one chosen corporate strategic model analysed in the report, in this case the group decided to focus on Porters five forces. The group will apply critically apply this framework and critically apply this to a business of the groups choice (in this case Samsung) during the presentation. Corporate strategy 1 Boston Consulting Group Matrix The Boston consulting group matrix (BCG Matrix) is a four cell matrix developed by the Boston Consulting Group in the early 1970’s to manage and asses a business portfolio of products and their potential, “The matrix helps in development of plans which reflects the need of each business unit as well as business as a whole” (Brahma and Chakraborty 2011 p23). It takes into consideration the amount of market share, market growth and creates a graphic representation to help identify different products and...
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...reflecting their individual analysis to corporate strategy. The group will then put reports together to make a single portfolio of the different corporate portfolio framework analyses. Along side the written report the group will also work together to produce a presentation which will focus on one chosen corporate strategic model analysed in the report, in this case the group decided to focus on Porters five forces. The group will apply critically apply this framework and critically apply this to a business of the groups choice (in this case Samsung) during the presentation. Corporate strategy 1 Boston Consulting Group Matrix The Boston consulting group matrix (BCG Matrix) is a four cell matrix developed by the Boston Consulting Group in the early 1970’s to manage and asses a business portfolio of products and their potential, “The matrix helps in development of plans which reflects the need of each business unit as well as business as a whole” (Brahma and Chakraborty 2011 p23). It takes into consideration the amount of market share, market growth and creates a graphic representation to help identify different products and...
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...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 businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business potential and the evaluation of environment.According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share.Relative Market Share = SBU Sales this year leading competitors sales this year. Market Growth Rate = Industry sales this year - Industry Sales last year. | The analysis requires that both measures be calculated for each SBU. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance. The key theory underlying this is existence of an experience curve and that market share is achieved due to overall cost leadership. BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0. if all the SBU’s are in same industry, the average growth rate of the industry is used. While, if all the SBU’s are located in different industries, then the mid-point...
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...The PEST or PESTLE Analysis PESTLE is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors, which are used to assess the market for a business or organizational unit strategic plan Originally designed as a business environmental scan, the PEST or PESTLE analysis is an analysis of the external macro environment (big picture) in which a business operates. These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. A SWOT is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business. It involves specifying the objective of the business or project and identifying the internal and external factors that are supportive or unfavourable to achieving that objective. Definition of SWOT A SWOT analysis generates information that is helpful in matching an organization or group’s goals, programs, and capacities to the social environment in which it operates. Strengths * Positive tangible and intangible attributes, internal to an organization. * They are within the organization’s control. Weakness * Factors that are within an organization’s control that detract from its ability to attain the desired goal. * Which areas might the organization improve? Opportunities * External attractive factors that represent the reason for an organization...
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