bcg matrix explained- product fitment(neelkamal chair)

8/2/2019 BCG Matrix Explained- Product Fitment(Neelkamal Chair)

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BCG Matrix Explained- Product

Fitment(Neelkamal Chair)


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Project Goals

The goal of the project is to understand the BCG(BostonConsulting Group) Matrix and fitment of the specifiedproduct- Neelkamal Chair into the Matrix.


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Origin and Theory- BCG Matrix

In the 1970s, BCG created and popularized the BCG( Boston Consulting Group)Matrix, also known as the "growth-share matrix", a simple chart to assist largecorporations in deciding how to allocate cash among their business units. Thecorporation would categorize its business units as "Stars", "Cash Cows", "QuestionMarks", and "Dogs", and then allocate cash accordingly, moving money from "cashcows" toward "stars" and "question marks" that had higher market growth rates, and

hence higher upside potential.

It is based on the product life cycle theory that determines what priorities should begiven 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 growthproducts 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 thatthe bigger the market share a product has or the faster the products market grows,

the better it is for the company.

The chart was popular for two decades and "continues to be used as a primer in theprinciples of portfolio management," as BCG says.
http://en.wikipedia.org/wiki/1970shttp://en.wikipedia.org/wiki/Growth-share_matrixhttp://en.wikipedia.org/wiki/Growth-share_matrixhttp://en.wikipedia.org/wiki/Growth-share_matrixhttp://en.wikipedia.org/wiki/Growth-share_matrixhttp://en.wikipedia.org/wiki/1970s


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BCG Matrix


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The BCG Matrix Method

This method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach strategy, such as a generic growth target( 9% per year) or ageneric return on capital of say, 9.5% for an entire corporation.

In such a scenario:

1. Cash Cows Business Units will beat their profit target easily; their management havean easy job and are often praised anyhow. Even worst, they are often allowed toreinvest substantial cash amounts in their businesses which are mature and notgrowing anymore.

2. Dogs Business Units fight an impossible battle and, even worse, investments aremade now and then inhopeless attempts to turn the business around.

3. As a result (all) Question Marks and Stars Business Units get mediocre sizeinvestment funds. In this way they are unable to ever become cash cows.


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Competitive Analysis, Cont.


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Technology

New technology being used

Benefits

Standards being adopted

Benefits

Standards specifically being ignored

Drawbacks & benefits

DYA: define your acronyms!


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Team/Resources

State assumptions about resourcesallocated to this project

People

Equipment

Locations

Support & outside services

Manufacturing

Sales


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Procedures

Highlight any procedural differencesfrom regular projects of this type

Discuss requirements, benefits, andissues of using new procedures

FOR MORE INFO...

List location or contact for procedures document (or otherrelated documents) here


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Schedule

Review high-level schedulemilestones here

FOR MORE INFO...

List location or contact for detailed schedule (or other relateddocuments) here

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Phase 1

Phase 2

Phase 3


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Current Status

High-level overview of progressagainst schedule

On-track in what areas

Behind in what areas

Ahead in what areas

Unexpected delays or issues


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Related Documents

Marketing plan Location or contact name/phone

Budget Location or contact name/phone

Post mortem

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