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BCG Matrix

The BCG matrix, also known as the growth-share matrix, is a tool used to analyze business units or product lines based on their relative market share and growth rate. It divides analysis into four quadrants: stars (high market share, high growth), cash cows (high market share, low growth), question marks (low market share, high growth), and dogs (low market share, low growth). The document provides an example analysis of Pakistan's telecom sector using the BCG matrix, classifying Zong as a star, Mobilink and Telenor as cash cows, Zong as a question mark, and Ufone as a dog. It also lists some of Zong's strategies and strengths that

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Dr. Muhammad Nawaz Khan
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46 views9 pages

BCG Matrix

The BCG matrix, also known as the growth-share matrix, is a tool used to analyze business units or product lines based on their relative market share and growth rate. It divides analysis into four quadrants: stars (high market share, high growth), cash cows (high market share, low growth), question marks (low market share, high growth), and dogs (low market share, low growth). The document provides an example analysis of Pakistan's telecom sector using the BCG matrix, classifying Zong as a star, Mobilink and Telenor as cash cows, Zong as a question mark, and Ufone as a dog. It also lists some of Zong's strategies and strengths that

Uploaded by

Dr. Muhammad Nawaz Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BCG MATRIX

OR
GROWTH-SHARE MATRIX

M. NAWAZ KHAN
RIPHAH INTERNATIONAL UNIVERSITY, ISLAMABAD 11
WHAT IS BCG (GROWTH SHARE
MATRIX)

On the vertical axis, market growth rate provides a measure of market


attractiveness. On the horizontal axis, relative market share serves as a
measure of company strength in the market. 2
2
QUADRANTS OF BCG MATRIX
• STARS - HIGH GROWTH, HIGH MARKET
SHARE

• CASH COWS - LOW GROWTH, HIGH


MARKET SHARE

• QUESTION MARKS - HIGH GROWTH,


LOW MARKET SHARE

• DOGS - LOW GROWTH, LOW MARKET


SHARE 3
BCG MATRIX – TELECOM SECTOR,
PAK

4
BCG MATRIX – TELECOM SECTOR,
PAK
STARS - (HIGH GROWTH, HIGH MARKET SHARE)

Stars generate large amounts of cash, but also require heavy


investment to continue to grow and to maintain competitive
positioning. If successful, a star will become a cash cow
when its industry matures. e.g. Zong

CASH COWS - (LOW GROWTH, HIGH MARKET SHARE)

A Cash Cow generates more cash than it requires, providing


funds to the corporation to invest in other ventures. E.g.
Mobilink, Telenor
5
BCG MATRIX – TELECOM SECTOR,
PAK
QUESTION MARKS - (HIGH GROWTH, LOW MARKET
SHARE)

These businesses are termed "Question Marks" because they deserve


attention to determine if the venture can be viable. These businesses
require resources to grow market share, but whether they will succeed
and become stars is unknown. e.g Zong

DOGS - (LOW GROWTH, LOW MARKET SHARE)

• Businesses placed in this quadrant, if has not already developed a


strong competitive advantage, it should be divested. A dog may not
require substantial cash, but it ties up capital that could better be
deployed elsewhere. Unless a dog has some other strategic purpose, it
should be liquidated E.g. Ufone 6
ZONG’S STRATEGIES/STRENGTHS
1. STRONG CAPITAL

2. 3G/4G TECHNOLOGY

3. ZONG’S CELL PHONE

4. LOW PRICE STRATEGY

5. HIGH ADVERTISEMENT

6. MOUS WITH DIFFERENT DEPARTMENTS

7
QUESTION & ANSWERS

Q
&

A
8
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