Bcg matrix of hindustan uniliver limited essay

If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines.

bcg matrix of unilever pdf

The result is large net cash consumption. The theory behind the matrix assumes, therefore, that a higher growth rate is indicative of accompanying demands on investment.

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As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume.

Cash cows require little investment and generate cash that can be used to invest in other business units.

If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Dogs, it is thought, should be sold off. It can also show what type of marketing activities might be expected to be effective. Question marks also known as problem child are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. Cash cows require little investment and generate cash that can be used to invest in other business units. Thus, if the brand had a share of 20 percent, and the largest competitor had the same, the ratio would be A dog may not require substantial cash because dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash, and dogs are cash traps because of the money tied up in a business that has little potential and the capital that could better be deployed elsewhere. The growth-share matrix was intended to analyze a portfolio from a corporate perspective because it is only at that level that cash balance is meaningful. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. Cash Cow — a business unit that has a large market share in a mature, slow growing industry. Resources are allocated to business units according to where they are situated on the grid as follows: 1. It can also be used in growth analysis. Star — a business unit that has a large market share in a fast growing industry.

Cash Cow — a business unit that has a large market share in a mature, slow growing industry. It can also be used in growth analysis.

The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs. Leave a Reply Your email address will not be published.

Resources are allocated to business units according to where they are situated on the grid as follows: 1. Question marks also known as problem child are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash.

A dog may not require substantial cash because dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash, and dogs are cash traps because of the money tied up in a business that has little potential and the capital that could better be deployed elsewhere.

A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows.

bcg matrix for unilever products

It shows where the brand is positioned against its main competitors, and indicates where it might be likely to go in the future.

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BCG Matrix Hindustan Unilever Limited