Presented by………..Fedora D'souza

Nitin Jadhav

IntroductionAddresses the issue of the potential value of a

particular business for the firm. Used to establish the best mix of businesses

in order to maximize the long-term earnings growth of the firm

Has two variables: i) the potential for generating attractive

earnings levels now ii) the potential for growth for significantly

increased earnings levels in the future.

BCG Matrix

Star

DogCow

Question Mark

StarsHigh Market Share / High Market GrowthLeads to large amount of cash consumption and

cash generation. They require heavy investment, to maintain its

large market share.Star products represent, probably the best profit

opportunity available to a company,It is the future payoff of the star that counts, not

the present reported profit. Attempts should be made to hold the market

share otherwise the star will become a CASH COW.

CowsLow growth, High market share They are foundation of the company and

often the stars of yesterday. Generate large cash surpluses Because of the low growth, promotion and

placement investments are low.They extract the profits by investing as little

cash as possible They are located in an industry that is

mature, not growing or declining.

Question MarksHigh growth , Low market share Require more cash than they are able to generate

on their own.Absorb great amounts of cash if the market share

remains unchanged.Question marks are essentially new products

where buyers have yet to discover them.The marketing strategy is to get markets to adopt

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

DogsLow growth , Low market share Dogs are in low growth markets and have low

market share.Dogs are the cash traps.Dogs should be avoided and minimized.Expensive turn-around plans usually do not

help.Business is situated at a declining stage.

Product Portfolio Matrix: Strategic Consequences

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Bharti Airtel Limited a leading emerging market telecom services provider with operations in 19 countries across Asia and Africa.

Bharti Infratel Limited is amongst India's leading telecom passive infrastructure service providers.

4 Strategic Sub Units (SBU)

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Mobile Services–Prepaid & Postpaid–Blackberry–Smartphones–International Calling–Wireless Internet

Digital TV Services–Digital TV Recorder –IPTV

Enterprise Services– Corporate– Carriers

Telemedia Services– Fixed Line– Broadband

Passive Infrastructure–Bharti Infratel–Indus Tower

Subsidiary

BCG Matrix of Bharti Airtel Ltd

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SBU : Enterprise Services

SBU : Passive Infrastructure

SBU : Telemedia Services

SBU : Mobile Services

Strategic Business Unit

Market Share (SBU)

Market Share

(Largest Competitor)

Relative Market Share

Relative Market Share

(in BCG Terms)

Product Sales Growth(%age

change b/w FY 09-10)

Quadrant in which the SBU

lies

Mobile Services

63.32%Idea Cellular Ltd. - 21.94%

50.12% 2.28 7% Cash Cow

Telemedia Services

6.65%Tata Tele services - 20.32%

30.57% 1.5 2% Dog

Enterprise Services

(Carriers & Corporates)

16.41%Atire

Technology - 42.6%

14.50% 0.34 17% Star

Passive Infra 13.62%GTL Infra -

28.33%6.32% 0.22 38% Question Mark

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Justification StarEnterprise Services have been providing lot

of amount as per current base but needs investments in the higher proportion due to high growth rate, hence it needs lot of amount to stand the business

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Justification for Question Mark

Passive Infrastructure is a very new approach but has been able to hold quick grip in market

Good collaborations like Indus Towers could help them increase their market share if funded adequately

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Justification for Cash Cows

Mobile Services has been legacy of Bharti which has been enjoying a greater market share

It generates highest revenues among its other SBU’s

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Justification for Dogs

Telemedia Services have little potential for gaining sufficient share to achieve feasible cost positions also because of other big players already existing in the market

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BCG Matrix and PLC Curve

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Passive Infra

Enterprise Services

Mobile Services

Telemedia Services

Characteristics and Strategy Implications of Products in the Strategy Quadrants

Company BAJAJ Gr. Prdt/ser Relative Market share

Growth rate in %

Sales 2010(Rs.Crore)

Bajaj auto 2&3 wheelers 0.74 16.78 12,767.12Hero honda 2&3 wheelers 17,138.00

Bajaj Finserv Insurance & Financial services 0.62 23.39 985.41Bajaj Holding & investment ltd. Insurance & Financial services 1410.17

Mahindra & Mahindra Financial Services Ltd Insurance & Financial services 1,595.60

Bajaj Hindustan Sugar Sugar 0.28 21 422.17Balrampur chini mills Sugar 1,527.46

Bajaj Electricals Domestic Appliances 0.82 23.28 2,308.02I F B Industries Ltd. Domestic Appliances 666.08

Whirlpool of India Ltd 2,817.21

Bajaj corp ltd. Personal Care 0.10 18.4 334.87Dabur India Personal Care 3,466.38

Bajaj Steel ltd. Packaging 0.68 8.325 241.13Karur KCP Packkagings Ltd Packaging 355.74

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Company TVS Gr. Prdt/ser Relative Market share GR Rate in % Sales 2010

(Rs.Crore)

Sundaram Finance Finance 0.50 39.27 2,035.37IDFC Finance 4,060.16

Reliance Capital Ltd Finance 2,423.16

TVS motors 2&3 wheelers 0.38 16.78 4,811.40Bajaj auto 2&3 wheelers 12,767.12

Hero honda 2&3 wheelers 17,138.00

TVS electronics Hardware 0.01 14.93 200.36

Moser baer Hardware 2,370.48

Redington India Hardware 13,982.14

Sundaram Clyaton Brakes 1.69 9.14 5,729.01Amtek Auto Brakes 3,395.66

Indian Nippon Electricals Electrical 0.03 36.28 191.67Motherson Sumi Electrical 7,209.63

Minda Industries Ltd Electrical 503.33

TVS Srichakra Ltd Tyres 0.09 23.67 753.61 Apollo Tyres Ltd Tyres 8,414.04

MRF Ltd Tyres 5,966.55

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