BCG Matrix Research Articles

The Present and Future of Food Market in the Northeast Asia: Drinks Market

The main goal of this study is to show promising future food market of Northeast Asia countries, including China, Japan, and South Korea. Drinks market, including soft and alcoholic drinks is selected to show global food companies new opportunities for next strategic movements. Market Attractiveness Matrix is developed based on BCG matrix as a main framework for this study. CDI (Category Development Index) is also used. It is found that Asia-pacific has fast-growing markets and it has strong potential for future investment. Northeast Asia countries (China, Japan, and South Korea) turned out to be ones of the most attractive regional markets. However, European drinks market is saturated even though its size is still big. This study suggests that Northeast Asian market be considered a market for the next strategic movement and investment.

Supply Chain Management in the Aquaculture Industry: The Case of Food Fish Aquaculture in Sri Lanka

The study was taken up with the objective of identification of local and regional market potential for each main food fish species commonly found in the catch of inland fisheries and aquaculture in Sri Lanka and to identify the market segmentation of each of these fish species and prices in local and regional markets. The study methodology included both desk research and primary research in landing sites and regional markets of Western, Eastern, Sabaragamuwa and North-Central provinces in Sri Lanka. The study has employed BCG matrix for interpretation and analysis the supply chain. The study identifies the different value chains present in the trade map. Fishery value chain is dominated by few big players and a number of intermediaries were high and hence adds up to the cost of product without adding value to the chain. Presence of “patron-client relationship” throughout the supply chain is prevalent. The research indicates that the demand for fishe in the regional markets is dominated mainly by few preferential species. Key words: supply chain; fish and fishery products; Sri Lanka DOI: http://dx.doi.org/10.4038/suslj.v9i1.3741 Sabaramuwa University Journal, Volume 9 Number 1; December 2010, pp 147-169

Corporate Portfolio Management: Theory and Practice

Forty years after the introduction of the BCG growth‐share matrix, some version of corporate portfolio management (CPM) is employed by most large multibusiness companies. But little is known about the current practices of CPM. Which processes have companies adopted, and which executives in a company tend to be the main participants? What are the major corporate uses of CPM? And how satisfied are today's companies with their approaches?To answer these questions, The Boston Consulting Group, in collaboration with Freiberg University in Germany, conducted a comprehensive global survey on the practices of corporate portfolio management that involved more than 200 senior executives at the largest companies worldwide. These survey responses were supplemented by interviews with 50 senior executives of global multibusiness companies as well as a systematic review of more than 100 major client projects that BCG conducted between 2004 and 2009.One major focus of the survey was the concept of “parenting advantage.” Defined in terms of a particular company being the best possible owner of a particular business, the concept offers a clear framework for identifying the four most important ways in which management can use the principles and methods of CPM to create value for its businesses: Influencing strategy and improving performance through its distinctive capabilities and resources, including periodic evaluations of performance. Identifying and increasing synergies. Providing centralized functional leadership and cost‐efficient services. Monitoring and, when necessary, changing the composition of the portfolio of businesses. While fostering synergies and realizing advantage through centralization of functions and services were considered relevant by about half of the companies responding to the survey, the most important drivers of corporate value added by CPM were said to be the direct influence of the parents expertise and active portfolio monitoring. But even so, only 40% of recent divestiture decisions and 23% of recent acquisitions were said to be triggered by portfolio considerations, suggesting a significant gap between the effort put into CPM processes and their role in corporate‐level decision‐making.

Halonix Limited – the product portfolio dilemma

Subject area Strategy, strategic management, market and product analysis. Study level/applicability The case is intended for a business strategy course in management. The target participants are MBA students specializing in strategy area as well as middle level and senior level managers from the industry, who come for an executive programme in management science. Case overview Year 2009, Mr Pawan Kumar (General Manager, Halonix Limited) was facing a decision-making situation in the organization. Being one of the most experienced and oldest employees of Halonix (incorporated as Phoenix Lamps Ltd in 1991), he had witnessed the tremendous growth of the company since its inception in 1991. The company was having a global brand image in automotive halogen lamps and became a dominant player in compact fluorescent lamp (CFL) market in India by 2007. With the increasing competition and change in market dynamics, the company needed to decide upon the future product portfolio mix and strategy to be adopted to gain the maximum benefit and win over the competition in both the product segments. The automotive halogen product segment was generating higher margins but having relatively slow growth. The CFL product segment was a growing market but was generating low margins due to increasing competition from entry of large number of players. Expected learning outcomes The theoretical concepts, which will be explored in this case, involve the following: the importance of industry structure analysis in understanding the basis of competition. The importance of value-chain analysis in strategic planning. The importance of Boston Consulting Group growth-share matrix in evaluating the product portfolio mix having different growth drivers and target segments? Supplementary materials Teaching notes.

Strategi Bisnis pada PT CTL Dengan Pendekatan Metode Tows

The purpose of this research is determining direction of the correct business strategy to be applied by PT CTL, a garment company producing cloth for men. Research method used by the author is descriptive analysis with a case study research method. Research is conducted by collecting data obtained through survey by interview and giving questionnaire to all staff and head and also observation by evaluating directly the research object and also through literature study. Data analysis is conducted through input phase by using IFAS and EFAS matrix, adaptation phase with TOWS diagram, TOWS matrix and Internal-External matrix, and also uses SPACE matrix and also BCG matrix to analyse company's finance situation. Based on the conducted analysist the recommended corporation level strategy to be used by the company is diversification strategy direct to growth and stability.

PERANCANGAN RENCANA STRATEGIS SISTEM INFORMASI DAN TEKNOLOGI INFORMASI (SI/TI): STUDI KASUS STMIK XYZ

Nowadays, business activity in every organization will not be parted from information system (IS) and information technology (IT). STMIK XYZ is one private college that has a good business growth. In order to reach the objective of the college in its vision and mission, it needs business strategy and IS/IT strategy. The basic concept in arranging framework IS/IT strategic planning in STMIK XYZ is John Ward and Joe Peppard’s concept. The framework of IS/IT strategic planning consists of 5 steps, that are initialization preparation strategic planning of IS/IT, understanding business and information needs, defining target of IS/IT, defining strategic IS/IT, and planning and implementation. Strategic analysis uses PEST analysis method, BCG matrix analysis, five Porter power analysis, SWOT analysis, value chain analysis, CSF and KPI analysis. The research result is to make a framework of IS/IT integrated strategic planning so it could ease the management to manage resources to produce information that needed, accurate, and could be used by anybody.Keywords: planning, business strategy, IS/IT strategy, information system strategic planning, Ward & Peppard method.

Incorporating greenhouse gas effects to evaluate energy efficiency in China

Reducing greenhouse gas emissions without hampering economic growth is a significant issue for China. Taking into account environmental sustainability principles, this study analysed the energy efficiency of 30 regions of China for the period 2002–2007. By employing a data envelopment analysis (DEA) approach, this study included undesirable CO2 and SO2 outputs and the desirable GDP output in the model. Empirical outcomes demonstrated that the overall average technical efficiency (TE) of China is 0.843, indicating a 15.70% input inefficiency. Among three geographic areas, the east has the highest technical efficiency, with the highest ability to set up clean-burning power plants based on best technology available. Performance in the west is less good because of much inefficient technology. Finally, the study demonstrates detailed management implications of the BCG matrix. The most important contribution of this paper is a detailed demonstration of an energy performance evaluation mechanism for China. The valuable results and insights gained can be equally effectively applied to studies in other developing countries facing the same gaseous emissions.

Study on Optimum Product Portfolio of Coach Board for Metallurgical Enterprise Based on Four-Dimensional Analysis Method

The paper analyzes the application of traditional Boston matrix method and three dimensional analysis chart method on product portfolio of metallurgical enterprise, and raises a four dimensional analysis method by inheriting their advantages and improve disadvantages. It is more effectively and practically to establish optimum product portfolio of domestic metallurgical enterprise by the four dimensional analysis method and the four elements are market share, sales growth rate, profitability and sales efficiency. When metallurgical enterprises analyze the optimum product portfolio using four dimensional analysis method, they should take sales efficiency fully into account, adjust product portfolio timely and at last realize the optimum product portfolio.

Strategic Analysis on Advanced Chemical Industries (ACI) Limited

The first part of the report is mainly a general discussion about the ACI Limited, including – a general overview, organizational structure, brief discussion of the units and subsidiaries, product lines, mission and vision of the organization, business environment analysis through PEST and SWOT analysis of the organization. The second and the core analytical part of the paper includes strategic analysis of the ACI Limited in four area, including – management structure, financial analysis, marketing analysis and distribution analysis. These analyses are done by using a wide range of tools of strategic analysis. Management structure of the ACI Limited is analyzed according to the ‘Mintzberg theory of organizational structure’. Whole management structure is divided into five core blocks according to the theory and so their contribution to the organization. Financial analysis is mainly based on three tools, including - break-even point (BEP) analysis, margin of safety analysis and sensitivity analysis. As we do not have all the information required to make these analysis accurate, we based our analysis on some assumption. These are – 1. All the cost of goods sold is assumed to be variable. 2. Expenses other than cost of goods sold are assumed to be fixed. Marketing and product analysis of the ACI Limited also based on the three tools, including – stakeholders mapping; power and interest analysis, BCG growth share matrix analysis and Ansoff model analysis. Stakeholders mapping analysis is there to find out the key players for the organization which have a very good impact in formulating marketing and distribution strategy. BCG growth matrix indentified the current market position of each product and indicates for whom the management should concentrate more. Ansoff model divided the products into four major categories and prescribed marketing strategies for each. Distribution system analysis are based on the distribution models which only demonstrate the distribution channel used to reach the product form producer to end user or consumer. All of these analyses find out some core advantage of the ACI Limited and some lacking which are summarized at the end of the analysis along with some recommendations.

An Analysis of Market Performance of Mobile Phone Operators in Bangladesh

The market of mobile phone of Bangladesh is a stiff competition market. There are lots of competitions among the service provider in this sector. And people have the query to know the current situation in the market. To know the current situation of the market I collect some raw data, like – the amount of subscriber of different operators, from the “Bangladesh Telecommunication Regulatory Committee (BTRC)” website and interpreted them to find out the performance of the various operators operating in this sector. Some other information is collected from the official website of the various companies. I use trend analysis and BCG matrix and other tools to find out performance of the companies using the raw data. At last by considering my analysis I draw a conclusion.

A comparative study of energy utilization efficiency between Taiwan and China

This paper employs data envelopment analysis to evaluate energy utilization efficiency between China and Taiwan from 2002 to 2007. The most important contributions of this paper are the clear description of the systematic process of energy utilization efficiency, the efficiency comparison between China and Taiwan, the remarkable demonstration of their outputs through two non-desirable outputs (CO 2 emissions and SO 2 emissions) in the data envelopment analysis framework, and the valuable results and insights gained from the application of economic development and environmental protection. Empirical results show that the Eastern region of China enjoy higher energy utilization efficiency than the Western region. Energy utilization efficiency in Taiwan is higher than that in the Eastern region of China. In China, CO 2 emissions were 11.28% greater than they should be (from 2002 to 2007). By contrast, CO 2 emissions in Taiwan were only 1.50% in excess of what they should be since Taiwan began conducting an uninterrupted energy-saving policy and a CO 2 emission regulation policy ( Bureau of Energy, Ministry of Economic Affairs, 2009). Finally, this study employs the business strategy matrix constructed by the Boston Consulting Group (BCG Matrix) to illustrate individual evidence of the relationship between economic development efficiency and greenhouse gas efficiency.

Analysis without paralysis: 10 tools to make better strategic decisions

If you're a manager or business owner, you need tools to make better decisions--about business strategy, marketing, competition, positioning, product development, and much more. In Analysis Without Paralysis, two renowned experts on business analysis and strategy bring you those tools, in plain English!Babette Bensoussan and Craig Fleisher teach you exactly what you need to know, without dragging you through unnecessarily complex concepts or advanced mathematics. They start with a practical, realistic introduction to the analysis process; then they walk you through ten core sets of analysis techniques that every manager can use effectively.You'll master classic techniques like SWOT analysis and Porter's Five Forces, in addition to the latest approaches to competitor, financial, issue, and value chain analysis. Next, Bensoussan and Fleisher guide you through analyzing the global social, political, and macroenvironmental challenges that will increasingly shape the future of your business.For each tool, the authors present clear descriptions, context, rationales, strengths, weaknesses, step-by-step instructions, and case study examples. The result: a book you can rely on to address your strategic and business challenges--whatever your role, experience, industry, or environment.i? Don't just collect data--use it for competitive advantageUncover correlations, assess trends, identify performance gaps, and identify your best opportunities Get truly actionable outputs from your analysisPerform future-oriented analysis that leads to better competitive strategies and tactics Use analysis to anticipate and adapt to rapid changeGet early warnings of emerging threats--and respond more quickly The Practical, Plain-English Guide to Business Analysis for Every Manager and Business Owner!You can use business analysis to address your most crucial strategic and tactical challenges--without burying yourself in advanced math or arcane theory! This friendly guide walks you through the entire business analysis process and then explains each of today's most valuable analysis tools--in plain English. You'll be able to make better decisions and get better results--even if you've never been responsible for analysis before.Babette Bensoussan and Craig Fleisher illuminate BCG matrix; Porter's “Five Forces”; SWOT analysis; modern competitor, financial, issue, and value chain analysis; long-term scenario planning; emerging macroenvironmental (STEEP/PEST) techniques; and much more. You'll find realistic case studies, in addition to practical guidance for choosing the right tools for each challenge. Even if you've never performed business analysis before, Analysis Without Paralysis can help you gain the insights and build the strategies for a winning future.

USING STRATEGY TOOLS IN PRACTICE: AN EXPLORATION OF "TECHNOLOGIES OF RATIONALITY" IN USE.

The article discusses business strategy tools, such as the seven S's, five forces, the BCG growth-share matrix, or strategic group maps. It investigates how strategy tools are actually used. This is said to be more of a dynamic, sensemaking process rather than a discrete phase of purely rational decision making. Examples from field studies are analyzed in order to elucidate the ways in which business strategy tools are shaped by the context in which they are used, and the interests of people who use them.

The Convergence Model:Product Evolution Stages and Investment Strategies

Marketing is an amazing story, an incredible function and perhaps the most challenging thing because of the certainty of an event called change. Because of this, a product and its marketing strategies need to adjust itself to the changes. This has lead to the theories of Product Level Hierarchies and Product Life Cycle, which explain the evolution of a product and it's marketing in several stages. Businesses no longer are situated in one place as one unit that has given way to the concept of business unit and business unit level strategy. The BCG Matrix is a very well known model explaining the investment strategies for different business units in different market situations. But none of the above-mentioned theories and models are free from criticism as each fails to explain the marketing strategies completely. Barksdale and Harris Combined Portfolio Model is an improvement over these models and takes care of most of the criticisms. But still there are gaps. To bridge those gaps we propose a Convergence Model where the Product Level Hierarchy has been superimposed on the Barksdale and Harris Combined Portfolio Model. This Convergence Model is only a better explanation but not an exhaustive one.

A study on the Development of Third Party Logistics Industry with BCG Matrix Analysis: Analysis of the Third Party Logistics Industry in the U.S.A.

A study on the Development of Third Party Logistics Industry with BCG Matrix Analysis: Analysis of the Third Party Logistics Industry in the U.S.A.

A Study of the Construction of BCG Matrix for Nestle India

Riding on the growth of its power brands, Nestle has extended its dominance in food business in India as well. However, a number of its brands require a repositioning. The present exercise is an attempt to analyse the position of the different brand offered by Nestle India. The aim is to assess the positioning decision of Nestle as far as its different brands are concerned while also looking for prospects that avail the Indian market. In this regard, the chapter titled introduction gives an insight into the objectives of the study, a brief explanation of the concept behind BCG matrix and also a brief overview of Nestle India. The bulk of the study has been done in the second chapter titled a study of the construction of the BCG matrix of Nestle and all the different brands offered by Nestle in India have been analysed along with a critical insight and also specific suggestion have been made therein. The chapertization is as under; (i) Executive Summary (ii) Objectives (iii) Research Methodology (I) Introduction (II) Studying the construction of BCG matrix for Nestle (III) Conclusion (IV) Suggestions (V) Limitations (VI) Bibliography Annexure - I (The BCG Matrix explained) Annexure - II (List of Nestle Products worldwide) Annexure - III (List of Nestle Products offered in India) Annexure - IV (List of provisional stores surveyed for the study)

Abschied vom Marktwachstums-Marktanteils-Portfolio nach über 35 Jahren Einsatz? Eine kritische Überprüfung der BCG-Matrix

Das von der Boston Consulting Group vor mehr als 35 Jahren entwickelte Marktwachstums-Marktanteils-Portfolio (im Folgenden: BCG-Portfolio) ist nach wie vor weit verbreitet, obwohl an seiner Eignung grose Zweifel bestehen. Der vorliegende Beitrag fasst die uber die Jahre dazu erarbeiteten Forschungsergebnisse zusammen und illustriert die Mangel des BCG-Portfolios anhand einer Fallstudie zur Deutschen Lufthansa AG. Schlieslich werden mogliche Folgerungen fur Anwendung, Lehre und Forschung aufgezeigt. Dabei gelangt der Verfasser zu der Beurteilung, dass die Mangel des BCG-Portfolios durch seinen moglichen Nutzen nicht kompensiert werden und es daher nicht angewendet werden sollte. Dem Beispiel von Kotler und Keller folgend das BCG-Portfolio aus Lehrbuchern zu entfernen, ist nicht vorbehaltlos zu empfehlen. Zumindest aber darf es nicht unkritisch als praskriptives Instrument gelehrt und angewendet werden.

ENGLISH

The paper discusses the financial issues of the library schools residing in the public universities especially in the South Asian region. It specifies the particular issues faced by the library schools because of their small size, high proportion of women as staff and students, lack of research and their tendency to relate more to the professional world than the academic world. It provides a detailed SWOT analysis of the National Institute of Library and Information Sciences (NILIS). It also describes the Ansoff Matrix, which is a commonly used tool by the business organisations to develop market–product strategies. The paper analyses the education programmes commenced by the NILIS during 2003-2005 in the light of marketing-product strategy. It discusses the success of the endeavour using the Boston Matrix, which is a tool used to measure the success of the market–product strategy. The paper also highlights some threats posed by the environment, which hinder the successful implementation of the programmes and concludes that an authority to manage financial matters and qualified staff with a sound knowledge of f inancial regulat ions is essent ial for the success of the market–product strategies. http://dx.doi.org/10.14429/djlit.27.2.130

Towards market-conscious planning in Amsterdam: A portfolio approach

Click to increase image sizeClick to decrease image size Acknowledgements The authors would like to thank three anonymous reviewers for their constructive comments on this article. Notes 1. In the Ansoff matrix, combinations of old/new products and old/new markets result in four types of products, with accompanying strategies. 2. The GE/McKinsey matrix is comparable to the Growth-Share matrix, but making it operational requires far more complex collecting and processing of data, both in business as in the adapted tool introduced here. Additional informationNotes on contributorsFrank Le ClercqIn memoriam Frank le Clercq, 1945 – 2006. Sadly, author Frank le Clercq has passed away. As a professor at the University of Amsterdam he has been of great importance of the research of transport and planning. He was also the main inspirer of the research reported in this article.

Integrated Marketing Communications and Market Planning

This article links the integrated marketing communications (IMC) concept to the planning process in marketing. Following the current conceptualizations as a combination of various marketing communications tools, IMC strategy is applied to an established strategic market planning model named the Boston Consulting Group (BCG)'s growth-share matrix. Advertising, public relations, sales promotion, and direct marketing are defined as crucial elements for the core scheme. Alternative strategies for brands in different stages are identified from the product portfolio analysis. The view may also be thought of as the ongoing process of building and maintaining brand equity for consumers in the long-term period. Conceptual discussions are expected to help marketers think more strategically as they plan IMC programs for their products or services.