BCG MATRIX Case Study: Malaysia Mobile Telecommunications Presented for: Assoc. Prof. Dr. Zarina Salleh Prepared by: Siti Nur Azzyati Saharuddin
INTRODUCTION ______________________ • Develop by Bruce Henderson of Boston Consulting Group , 1960s. • Technique that classified business as low or high performance based on their market growth rate and relative market share. • Advantages of BCG Matrix: 1. Easy to plot 2. Catchy name for quadrants (Star, Question Marks, Cash Cows, Dog) BCG MATRIX
• Axis in graph present: 1. Market/industry growth – Y axis 2. Relative market share (RMS) – X axis Annual growth for market SBU operates Market share compare to other competitors
MARKET GROWTH RATE _____________ • Normally used as a measure of market’s attractiveness. • Formula: MGR = Current Sales – Last Year Sales Last Year Sales
RELATIVE MARKET SHARE _________ • Formula: RMS = Business Unit Sales this year Leading rival Sales this year
BCG MATRIX MARKET LEADERS IN HIGH GROWTH MARKETS NOT MARKET LEADERS IN HIGH GROWTH MARKETS MARKET LEADERS IN LOW GROWTH MARKETS NOT MARKET LEADERS IN LOW GROWTH MARKETS
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