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BCG:

1,2 & 3: [Pg 27, Annual Report 08-09, Lucky Cement

4: [Pg 3, Economic Survey Pakistan, 08-09, http://www.finance.gov.pk/admin/images/survey/chapters/03-Manufacturing09.pdf]

BCG Matrix Calculations


(Metric Tons)
1
Industry Sales 30,774,856
Leader's Sales2 5,903,639
Attock's Sales3 1,719,258
Attock's Relative Market
Share 29.12%

Industrial Growth4 4.70%


Currently APCL is in the question mark area of the BCG matrix which indicates it
weaknesses regarding the low market share position as compare to the other
player in the industry, though it has excess cash positions as its liquidity is higher
than that of the industry average but still it has not proved to be a success factor
for the company, and is a bit neglected area and an area of major concern.

Keeping in mind the BCG result, APCL should opt for the market development
strategy mainly in the urban areas of Punjab as it’s the most densely populated
province of Punjab and has a demand potential which is far better than the other
provinces; also the government development expenditure is also at its best in that
region. Therefore, catering that segment will not only enhance the productivity of
the APCL but also will provide them with the opportunity to increase their profit
margins. This strategy is aligned with the excess cash and strong financial position
of the APCL and should be jealously guarded.

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