ASSIGNMENT

ON
BCG MODEL AND GE9

SUBMITTED TO:

PROF.RATNESHPAL SINGH

SUBMITTED BY:

JAGMEET SINGH

MBA 2 nd year

6411
 BCG MATRIX MODEL

The BCG matrix or also called BCG model relates to

marketing. The BCG model is a well-known portfolio
management tool used in product life cycle theory. BCG
matrix is often used to prioritize which products within
company product mix get more funding and attention

What is the BCG matrix and how does the BCG

model work?

Placing products in the BCG matrix results in four categories in a

portfolio of a company:
BCG STARS (high growth, high market share)
- Stars are defined by having high market share in a growing market.
- Stars are the leaders in the business but still need a lot of support for
promotion a placement.
- If market share is kept, Stars are likely to grow into cash cows.
 BCG QUESTION MARKS (high growth, low market share)
- These products are in growing markets but have low market share.
- Question marks are essentially new products where buyers have yet
to discover them.
- The marketing strategy is to get markets to adopt these products.
- Question marks have high demands and low returns due to low
market share.
- These products need to increase their market share quickly or they
become dogs.
- The best way to handle Question marks is to either invest heavily in
them to gain market share or to sell them.

BCG CASH COWS (low growth, high market share)

- Cash cows are in a position of high market share in a mature market.
- If competitive advantage has been achieved, cash cows have high
profit margins and generate a lot of cash flow.
- Because of the low growth, promotion and placement investments
are low.
- Investments into supporting infrastructure can improve efficiency and
increase cash flow more.
- Cash cows are the products that businesses strive for.
BCG DOGS (low growth, low market share)
- Dogs are in low growth markets and have low market share.
- Dogs should be avoided and minimized.
- Expensive turn-around plans usually do not help.
Some limitations of the BCG matrix model include:
 The first problem can be how we define market and how we get
data about market share
 A high market share does not necessarily lead to profitability at
all times
 The model employs only two dimensions – market share and
product or service growth rate
 Low share or niche businesses can be profitable too (some Dogs
can be more profitable than cash Cows)
 The model does not reflect growth rates of the overall market
 The model neglects the effects of synergy between business units
BCG MATRIX of MARUTI SUZUKI

STAR: The Company has long run opportunity for growth and
profitability. They have high relative market share and high

Growth rate. SWIFT, SWIFT DESIRE AND ZEN ESTILO is the fast
growing and has potential to gain substantial profit in the market.

QUESTION MARK: there are also called as wild cats that are new
products with potential for success but there cash needs are high

And cash generation is low. In auto industry of MARUTI SX4, GRAND

VITARA, ASTAR there has been improve the organization reputation

As they want successful not only in Indian market but as well as in

global market.

CASH COW: It has high relative market share but compete in low
growth rate as they generate cash in excess of their needs.

MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due
to introduction of ZEN ESTALIO and A STAR.

DOG: The dogs have no market share and do not have potential to bring
in much cash.BALENO, OMINI, VERSA There business have
liquidated and trim down thus

The strategies adopted are that are harvest, divest and drop.

BCG matrix can serves as a simple tool for viewing a corporation’s

business portfolio at a glance , and may serves as a starting point for
discussing
resource allocation among strategic business units.

GE-MCKINSEY MATRIX

The GE/McKinsey Matrix is a nine-cell (3 by 3)

matrix used to perform business portfolio analysis as
a step in the strategic planning process.
The GE/McKinsey Matrix identifies the optimum
business portfolio as one that fits perfectly to the
company's strengths and helps to exploit the most
attractive industry sectors or markets.
Thus, the objective of the analysis is to position each
SBU on the chart depending on the SBU's Strength
and the Attractiveness of the Industry Sector or
Market on which it is focused. Each axis is divided
into Low, Medium and High, giving the nine-cell
matrix as depicted below.
The GE/McKinsey Matrix differs from other tools,
like the Boston Consulting Group Matrix, in that
multiple factors are used to define Industry
Attractiveness and Business Unit Strength.

GE MATRIX OF MARUTI SUZUKI

The GE MATRIX is an alternative technique used in brand
marketing and product
management to help a company decide what product(s) to add to
its product
portfolio, and which market opportunities are worthy of continued
investment. Also
known as the 'Directional Policy Matrix,' the GE multi-factor model
was first
developed by General Electric in the 1970s.

MARUTI SUZUKI

Strong medium weakness

Swift alto A star

Swift dezire Sx4 baleno

Wagon r versa omini

The nine cells G>E Matrix are groome grouped on the basis of Low-
High industry
attractiveness and weak to strong business or competitive position.
Zones are made each indicating different
combinations that are as follows :

1.The upper left corner indicatestron g SBU’s i.e Swift, dezire&

Alto in which the
company should invest or grow with strategic decisions such as
market development or
expansion.
2.the diagonals cells stretching from lower left to upper-right
indicate SBU’s that are A star,SX4 & Grand Vitara Medium in
overall attractiveness indicating hold and maintain current
strategies.
3.The 3 cells in the lower right corner indicate SBU’s that are l
ow in overall
attractiveness that are baleno, omini, versa indicating
retrenchment strategies of
divestment and closure adopting turnaround strategies.