There are many well known frameworks based on this design. Perhaps the most famous is the BCG Matrix.
There are four sections to the Boston Matrix, problem child, stars, dogs and cash cows. Each category is different to one another as they represent different products on how they are selling. The Boston Matrix can be useful to a business like Cadburys as they have a wide range of products in which they can separate to these four different categories.
The four different categories within the Boston Matrix are: Problem Children Dogs Cash Cows The market growth is the amount of potential consumers that could buy your product but have not bought it yet. The market share is the amount of consumers that are currently buying your product. Problem Children This is the category for products which have a low market share within a high growth market.
These products need money to develop them and also have potential for the future. A product within this section would be the new Dairy Milk Bubbly. This is because this product has just been released this year and is a new product on the market. As it being a new product on the market this means it is going to have a low market share but the overall product has potential to develop and increase its growth market.
This would help them make this product reach its full potential and capability. Stars This is the category in which products within this category have a high growth and also have a higher share within the market too. Products within this market are doing well, but still have further potential.
The chocolate bar that would fit into this category would be the Aero Bubble.
The reason for this is because this chocolate bar has a high market share within a fast growing industry. This allows this product to do well but can also has potential to grow. Dogs Products within this category in the Boston Matrix have a low growth market and also have a declining market.
These products are usually within the declining stage on their own life cycles.
Companies may take products off the market due to the lack of its sales that it is generating. Cadburys Bournville chocolate bar is an example of a chocolate bar which is within this section.
This because there is not many people buying this chocolate bar, it is declining within the market which puts it in the declining stage within its life cycle. This is why this is chocolate bar is in the Dog section. Cash Cows Products that are in this section usually having a high market share but also a low growth market.
Products within this stage are usually within the maturity stage on their product life. These products do not require a lot of help because they have already established their consumers therefore their market is high and is at a steady pace with regular sales.
Cadburys Dairy Milk is an example of a chocolate within this section. The reason or this is because Dairy Milk has been around for years and everyone recognises the chocolate which means it is already established and known.
Dairy Milk does not require any advertising but may need a little help like a new packet, or an offer to get people buzzing about it again. The reasons they are called cash cows are because they generate money in excess of the amount needed to maintain the business.
The reason this section is the best section is because products within this section need very little amount of advertising due to the high market share that they have.
The Fuse Bar The Fuse when launched went through all of these sections in its life time. The Fuse Bar had its ups and down throughout its life time.
The reason for this was because of the fact that it had a very big open day known as the Fuse Day. This had increased sales within the introduction thus having a high growth market and high market share straight away with sales of 40 million within the first week.
This is because everyone knew about the Fuse Bar and recognised it. This left it with no new potential consumers. This is why they were within this section. This only lasted for about a month or two. This was because no one really knows what had happened but it is suggested that the Fuse Bar was trying to market itself more and fell into having a high growth market and a low market share.
Because the share had dropped, it had potential to grow again so they re-advertised again.Organizations should take each of the six dimensions into consideration when determining the best location. Is the company looking for several hundred highly skilled programmers at a reasonable cost? A BCG.
or Boston Consulting Group% BCG Matrix Department Consumer Electronics Home Office Entertainment Software Appliances Total Sales Best Buy Company sells many different products. it would be considered a star% relative market share position.
home office % IG Rate % /5(1). BCG matrix is a strategic decision making technique that helps in resource allocation among different cost centers or cost objects by categorizing or ranking them based on their ability to generate cash inflows against cash consumption or cash outflows.
BackgroundThe BCG Matrix (Growth-Share Matrix) was created in the late by the founder of the Boston Consulting Group, Bruce Henderson, as a tool to help his clients with efficient allocation Find this Pin and more on Marketing by Angeles GC. BCG Matrix Definition and Examples [presentation infographics] The Boston Consulting group’s product portfolio matrix (BCG) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.
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