Presented by………..

Fedora D'souza
Nitin Jadhav
Introduction
Addresses 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 Question Mark

Cow Dog
Stars
High Market Share / High Market Growth
Leads 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.
Cows
Low 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 Marks
High 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
Dogs
Low 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.

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4 Strategic Sub Units
(SBU)
Mobile Services  Enterprise Services
–Prepaid & Postpaid
– Corporate
–Blackberry
– Carriers
–Smartphones
–International Calling
–Wireless Internet  Telemedia Services
– Fixed Line
Digital TV Services – Broadband
–Digital TV Recorder
–IPTV

Passive
Subsidiary Infrastructure
–Bharti Infratel
–Indus Tower
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BCG Matrix of Bharti Airtel
Ltd

SBU : SBU :
Enterprise Services Passive Infrastructure

SBU : SBU :
Mobile Services Telemedia Services

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 Strategic Market Market Share Relative Relative Product Sales Quadrant
Business Unit Share (Largest Market Market Growth in which the SBU
(SBU) Competitor) Share Share (%age lies
(in BCG change b/w
Terms) FY 09-10)

Mobile 63.32% Idea Cellular 50.12% 2.28 7% Cash Cow

Services Ltd. - 21.94%

Telemedia 6.65% Tata Tele 30.57% 1.5 2% Dog

Services services -
20.32%

Enterprise 16.41% Atire 14.50% 0.34 17% Star

Services Technology -
(Carriers & 42.6%
Corporates)
Passive Infra 13.62% GTL Infra - 6.32% 0.22 38% Question Mark
28.33%

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Justification Star
Enterprise 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
Mobile
Services
Telemedia
Services
Enterprise
Services

Passive
Infra

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Characteristics and Strategy Implications of Products in the Strategy
Quadrants
 Company BAJAJ Gr. Prdt/ser Relative Growth Sales
Market rate in % 2010
share (Rs.Cror
e)
Bajaj auto 2&3 wheelers 0.74 16.78 12,767.12
Hero honda 2&3 wheelers 17,138.00
Bajaj Finserv Insurance & Financial 0.62 23.39 985.41
services
Bajaj Holding & investment ltd. Insurance & Financial 1410.17
services
Mahindra & Mahindra Financial Insurance & Financial 1,595.60
Services Ltd services
Bajaj Hindustan Sugar Sugar 0.28 21 422.17
Balrampur chini mills Sugar 1,527.46
Bajaj Electricals Domestic Appliances 0.82 23.28 2,308.02
I F B Industries Ltd. Domestic Appliances 666.08
Whirlpool of India Ltd 2,817.21
Bajaj corp ltd.  Personal Care 0.10 18.4 334.87
Dabur India  Personal Care 3,466.38
Bajaj Steel ltd. Packaging 0.68 8.325 241.13
Karur KCP Packkagings Ltd Packaging 355.74

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 Company TVS Gr. Prdt/ser Relative GR Rate Sales
Market share in % 2010
(Rs.Crore)
Sundaram Finance Finance 0.50 39.27 2,035.37
IDFC Finance 4,060.16
Reliance Capital Ltd Finance 2,423.16

TVS motors 2&3 wheelers 0.38 16.78 4,811.40

Bajaj 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 5,729.01

Amtek Auto Brakes 3,395.66

Indian Nippon Electricals Electrical 0.03 36.28 191.67

Motherson 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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