FPT COMPANY

1. SBU analysis in the Boston matrix

Based on the analysis of the market development level and relative market share. We
can compare each SBU with other SBUs by analyzing the BCG matrix of each SBU
in the BCG matrix. The Boston Matrix is divided into four subgroups:
 Stars
This is considered the best portfolio or SBU for businesses. In this SBU, star products
have good growth and high market share, so they generate a lot of profit for
businesses. Products in this section are usually exclusive products or newly launched
products, which are loved and appreciated by customers. However, a product with a
high growth rate also means that it requires a large amount of capital investment. In
case, the star is well invested and developed, in the future even if the growth rate
decreases, it will also become a dairy cow, that is, even though the growth rate is low,
it still captures a high share in the market. . Therefore, the advice for businesses is to
invest more in the products of this star group.
 Question mark
Question mark SBU refers to products with a high growth rate but low market share
in the market. Products in this group require a large amount of capital investment but
yield little profit. That's why people named these products as question mark SBU.
Because it can grow into stars but can also be turned into dogs depending on the
market as well as the business plan of the business. Therefore, business leaders need
to consider carefully to come up with a reasonable business strategy for the products
of this group.
 Cash cows
Dairy cows are SBUs representing a group of products with low market growth but
high market share. Products in this group will help businesses earn relatively stable
profits. On the other hand, dairy products provide profits that help the company turn
the question mark SBU into the market.
Therefore, companies should invest heavily in dairy SBU to maintain current
productivity and revenue levels as well as generate passive profit for the company in
the future.
 Dogs
 The dog refers to products that have a low growth rate and market. For products in
this group, it is not necessary for businesses to invest resources because it will not
earn the profits or market share that the company wants.
2. Define a portfolio of SBUs and assess their future prospects
Market
SBU Product Number of opponents Revenue
growth
A Telecommunication 3 3000 27%
B Digital content 5 1800 59%
C System integration 4 4024 22%
D Production and distribution 7 17680 13%
of IT products into
telecommunications
E Education 9 540 36%

3. Sort the SBUs into the BCG matrix

Starts Question Marks

AE B

Cash Cows Dogs

C D

4. Define a strategy for each SBU

 Stars: SBUs A and E.
- These SBUs have a high growth rate and a relatively high growth market share,
which is common among SBUs that are in a strong growth phase. These products
are starting to enter the growth phase, developing with competitive advantages and
opportunities for growth, the potential for profit and long-term growth, and the
ability to bring the greatest profit for the business.
- Strategic solution:
+ Actively invest and grow to strengthen the leading position of the product line
+ Invest in perfecting product structure, installing new production lines, and
penetrating deeply into the market.
 Question marks: SBU B
 - SBU B in this box are usually newly established in an industry with high growth
(59%) and relatively low market share, but they have high growth potential, if
invested in the right direction If the market accepts it, the SBU in this box will
move to the start box and vice versa if the market doesn't accept it, it will move to
the dead spot.
- Strategic solutions: The company must invest in the right direction and invest
selectively and promote customers to know about the company's products.
 Cash Cows: SBU C
- Has a low growth rate and a relatively high market share. There is a position but
the growth potential starts to slow down. This product is in the saturation stage
(ripe) profits decrease, and sales decrease.
- Strategic solution:
+ Enterprises should limit investment but focus on exploiting and actively recovering
profits.
+ Carry out promotional activities, promotions, and discounts.
 Dogs: SBU D
- Has a relatively low market share and low market growth rate, is unlikely to be
profitable, the product is entering a recession phase. SBUs are not capable of
growth, and development or are losing money. Once the products of this SBU
have great improvements in quality and design, these SBUs can switch to
questionable or star box but often have to invest large capital and face many
difficulties in transitioning to a recession.
- Strategic solution:
+ Actively recover investment capital.
+ Cut costs.
+ Find measures to convert or withdraw from the market.