How to bcg matrix analysis by bank

The four quadrants of the growth-share matrix.

How to bcg matrix analysis by bank

Henderson for the Boston Consulting Group in This chart was created with the purpose of helping companies analyze their different business units or product lines. The analysis helps these companies to allocate resources where they are most appropriate as well as to use the results in brand marketing, product management, strategic management, and portfolio analyses.

These decisions include whether to keep a particular business unit, sell it or to invest more in it. The y-axis of the graph represents rate of market growth while the x-axis represents market share. The matrix helps add input to the decision making process but does not take into account all possible factors that a company may face.

These are the cows, the dogs, the stars and the unknowns. A product line of a business unit is plotted based on its relative market share and rate of growth in the market and falls within one of these categories. This means that they are able to generate revenues in greater amounts than the investment required to maintain their business.

The product line may be considered boring and settled in a mature market, with the company holding it to continue to generate revenues. The company will attempt to milk these as much as possible with as little investment as possible.

Usually, these product lines manage to earn what is put into them, breaking-even and maintaining the market share. Generally this unit is largely worthless to the company in terms of earning potential but may afford other benefits to the company such as the creation of jobs as well as synergies that assist other business units.

These benefits may be enough for the company to keep this business unit active despite its less than exciting position.

Definition

However, dogs can negatively affect how investors judge the management of a company and it is suggested that these product lines be sold off. These product lines have a clearly visible market or niche leading path and require large amounts of funding to ensure that they can fight of competitors and maintain their growth rate.

Companies aim to turn stars into their next cash cows with the inevitable decline in the growth of the industry. This can happen potentially if they are able to maintain their position as a market leader.

Understanding the tool

If this does not happen, then stars can turn into dogs. This is where most businesses will start from and at this point the business unit has the potential to grow market share and turn into a star or lose further marker share and turn into dogs when the growth of the market itself declines.

Careful study and analysis is required for business units in this category to assess their potential and worth. If any potential is seen then further investment can be made into them. The natural cycle for most products in that they begin their life as question marks and turn into stars as their position clarifies.

How to bcg matrix analysis by bank

When the market growth slows down, they turn into cash cows and at the end of the cycle, the cash cow turns into a dog.Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool.

It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates.

Create my BCG Matrix If you are working with a product portfolio, BCG growth-share matrix can give you a quick overview of how the products are doing and build a basis for further analysis. To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.

Analysis done on BCG matrix 1. HDFC BANK 1 | P a g e PROJECT REPORT On STRATEGIC ANALYSIS OF HDFC BANK Submitted as a part of CONTINUOUS ASSESSMENT- 1 For the partial fulfilment of award of degree of Master of Business Administration Submitted by Submitted to Batch 4, Group 5 Dr.

Hemraj Verma Pradeep Tiwari() SCHOOL OF BUSINESS. The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in to help corporations with analyzing their business units or product lines.3/5(2).

How to bcg matrix analysis by bank

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share, as shown in the diagram below. How to use the BCG Matrix? Other more tactical uses of matrixes to support your digital marketing strategy development include the Smart Insights: Content marketing matrix - Use to review your portfolio.

BCG Matrix - Meaning and its Limitations