Class 4: BCG Matrix SBU Sales & Market Share Competitors SBU Sales & Market share Competitor

: Birdy Sale = 1,200 Million MS = 7.5% Competitor : Birdy Sale = 5,525 Million MS = 65% Competitor : Moccona Sale = 164 Million MS = 4% Competitor : Nature Gift Sale = 1,000 Million MS = 50% Marke t Growt h Rate 36.8%

SBU

RMS

1. 3 in 1 Coffee

Sale = 10,114 Million MS = 61%

8.1 times 0.19 times 22.5 times 0.5 times

2. RTD Coffee

Sale = 2,125 Million MS = 12.62%

24.8%

3. Instant Coffee

Sale = 3,690 Million MS = 90%

-8.8%

4. Health Coffee

Sale = 500 Million MS = 25%

36.09 %

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Analysis
-RTD coffee and Health coffee can be positioned as Question Marks in BCG matrix because market share of RTD coffee only 24.9% and RMS only 0.19 times of strongest competitors while the Health coffee the market share is 36.9% and RMS 0.5 times of strongest competitions. These businesse are stars casue the attractiveness of their industry and opportunityto grow. To success Nescafe should spend quite hugh amount of invetment to increase the Marketshare by grow up their sales

3 in 1 Coffee

is Star Its the leader of 3 in 1 coffee in coffee industry with market share 58% and 8.1 times if compare with strongest competitors. In Stars need heavy investment to fight with the competition but not in this because this business cab generate high profit with small consumption , so cash flow isnt need here. However Nescafe doesnt have cash cow business. So we can predict that it is possible for 3 in 1 coffee become a cash cow

Instant coffee

is in War horse position because negative growth rate (8.8%) but this business still high market share 22.5 time than strongest competitors. This kind of coffee type the growth is going down and we can predicted that it will declining and difficult to generated profit. To cover cost Nescafe should still hold It or optimize current operation and discontinue By Analysis is SBUs of 3 in 1 Coffee , They can concentrate on Hold strategy to maintain their 3 in 1 instant coffee in its market position. Besides, support and improve in R & D to other SBUs such as instant coffee , Ready-To-Drink Coffee and Health Coffee

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