EdrawMax is an advanced all-in-one diagramming tool for creating professional flowcharts, org charts, mind maps, network diagrams, UML diagrams, floor plans, electrical diagrams, science illustrations, and more. The soda industry has been matured in recent years; therefore, the growth prospects for new products are limited now. A perfect example to demonstrate BCG matrix could be the BCG matrix of Pepsico. download Edraw Charting Software. Samsung sells phones, cameras, TVs, microwaves, refrigerators, laundry machines, and even chemicals and insurances. However, the brand has not been able to fetch consumers’ interest, which led to declined sales of this business unit. Now we’ll share 4 real examples that explain perfectly these categories: Windows – BCG matrix Star product example. Dogs represent business having a low market share in a low growth market. The dogs in the BCG Matrix are products at the end of the product lifecycle, or products that have had to compete against the competition. This gives you a clear overview of your product portfolio . Due to low market share, these firms face cost disadvantages. Every business needs strategic planning to rule in the industry. The categories were all given remarkable names- Cash Cows, Stars, Dogs, and Question Marks. Sample bcg matrix example drawn with the Edraw BCG matrix maker. An example BCG Matrix, help analyze the performance of products by growth and market share. This template can reduce the amount of time to create great BCG matrix by using built-in symbols right next to the canvas. Copyright Â© 2020 Edrawsoft. The BCG matrix on Pitchspot. Due to the rising need for bottled water, the growth opportunities for this business product in the industry has increased. A list of elements to be analyzed is made up at the first stage. BCG Matrix For Coca Cola The example BCG matrix for Coca Cola above is based on various statistics and reports available on the Internet. An example BCG Matrix, help analyze the performance of products by growth and market share. Cash Cows category represents businesses having a large market share in a mature, slow-growing industry. As the brand has not been able to gain widespread popularity similar to Coke. Fanta, a Coca-Cola product, is one such example where the business units can be seen as a question mark. The company has perfected its product mix over the years according to what’s working and what’s not. The BCG matrix: an example of construction and analysis in Excel. However, in some areas, it has been able to obtain a generous sales volume. Furthermore, Stars lead to a large amount of cash consumption and cash generation. In the 80’s and 90’s, the software and hardware market was booming. Even though Kinley faces competition from other competitors. Further, these firms required little investment and generate cash that can be utilized for investment in other business units. BCG Matrix helps business to analyze growth opportunities by reviewing the market growth and market share of products and further help in deciding where to invest, to discontinue or develop products. This is how the organization is earning a significant amount of revenues from its finished products. Preparation: Collect data and build the source table. Coca-Cola is one such example of Cash Cows. If you had bought a powerful new computer on January, that computer would be … A versatile cross-platform mind mapping tool. A strategic business unit (SBU) is a relatively autonomous unit of a firm. However, when Cash Cows lose their appeal and move towards decline, a retrenchment policy may be followed. For example, a company division, a product line within a division, or sometimes a single product or brand. Therefore, they require a huge amount of investment to gain or maintain market share and to become a Star product. BCG matrix with example 1. BUSINESS POLICY AND STRATEGIC MANAGEMENT BCG Matrix Presented By : Mayur Narole MBA (Finance) 2. They neither generate cash nor require a huge amount of cash. As the name suggests, it is difficult to say if these products will become the Stars or drop into the Dogs category. It helps companies to assess which products need to be promoted to generate revenue and which one needs to be discontinued. These products are loss-making. The categories were all given remarkable names- Cash Cows, Stars, Dogs, and Question Marks. It can be goods, assortment groups, company branches or enterprises. create and present BCG matrix in minutes. You are required to repel these products. The margins are low, the market share is low and the market barely grows or even shrinks. Here are the four quadrants of Pepsico’s growth-share matrix: Cash Cows – With a market share of 58.8% in the US, Frito Lay is the biggest cash cow for Pepsico. Stars are leaders in business. BCG matrix examples. The four categories are explained below with BCG Matrix diagram: Let’s understand BCG Matrix in detail with examples: These businesses represent a low market share in a high growth industry. An example of a product that can be classified as 'Star' in the BCG Matrix is the LED lamp from Philips. Sample bcg matrix example drawn with the Edraw BCG matrix maker. Let’s consider the construction of the BCG matrix on the example of an enterprise. They introduced the Growth-Share Matrix which is a designing and a planning tool that prepares graphical representations on the basis of a company’s products and services. You can download and modify these BCG matrix for your own use. In a diversified company, each business unit is an SBU. Therefore, The Boston Consulting Group designed product portfolio matrix (BCG matrix) or growth-share matrix to help business with long-term strategic planning. The example BCG matrix for Apple products above is based on various statistics and reports available on the Internet. BCG matrix with example 1. BUSINESS POLICY AND STRATEGIC MANAGEMENT BCG Matrix Presented By : Mayur Narole MBA (Finance) 2. Then you can use the built-in templates to
Diet coke, a Coca-Cola product, is on such example of Dogs. Just try it, you will love it! This template can reduce the amount of time to create great BCG matrix by using built-in symbols right next to the canvas. The BCG model helps in strategic planning, but like any other marketing model, it works in some situation and in others. BCG Model puts each of a firm’s businesses into one of four categories. It is a useful tool for analyzing a diversified company’s business portfolio. Therefore, the brand is losing its popularity. Therefore, in such situation, managers need to decide whether the investment currently being spent on keeping these products alive, could be spent on making something that would be more profitable. All rights reserved. Download BCG Matrix Templates in PDF Format. However, they require heavy investment to maintain its position and its large market share. Therefore, an attempt should make to hold market share and to support further growth, otherwise, a star will become a cash cow. Below is a sample BCG Matrix which can help to analyze the performance
of products by growth and market share. These products have rapid growth and dominant market share. Businesses under this category usually follow stability strategies. The four categories are explained below with BCG Matrix diagram: Let’s understand BCG Matrix in detail with examples: Question Marks (High Growth, Low Market Share) BCG Matrix (Growth Share Matrix): Definition, Examples, Question Marks (High Growth, Low Market Share), Cash Cows (Low Growth, High Market Share), 11 Examples of Augmented Reality in Everyday …, Blue Ocean Strategy – Definition and Examples, Rural Marketing & Advertising: Introduction, Nature, Innovative …. No doubt the market has growth opportunities, but these products have not succeeded to take benefits of these market opportunities to such an extent that they can be recognized as Stars. The Boston Consulting Group (BCG) is a management consulting firm that helps organizations to make informed decisions from the business point of view. The rising population would require more bottled water to fulfill the needs of the people. BCG Matrix Example. With the BCG Matrix you know in which products or services you should invest or divest. In a mature industry, it is advisable for a company to keep the sales volume high as the business unit is comparatively a good source to generate revenue. Samsung is a conglomerate consisting of multiple strategic business units (SBUs) with a diverse set of products. Plotting growth rates against market share relative to competitors yields the four quadrants of the Growth Share Matrix: Stars, Question Marks, Cash Cows, and Dogs. Generally, these products are the startup or new products, which have a good commercial prospect.