Boston Matrix Tool with Product Life Cycle Management - Assignment Example

Boston Matrix Tool with Product Life Cycle Management Introduction Boston Matrix model is a planning model that was developed by Bruce Henderson in 1970’s. The model is also termed as Boston Consulting Group (BCG), and it involved four categories that are based according to the market share and the market growth. The market share is based on the largest competitor while market growth is concerned with market or company attractiveness. The market share tries all the strategies that can make it have the competitive advantage over the other companies. This paper seeks to discuss the strategic implication of Boston Matrix Model for the next ten years strategic market plan for the enterprise. It will consider the full analysis and description of the application of Boston Matrix tool on the system developed by Abuja Energy Surveillance limited. The paper will also recommend the strategies required for the successful commercialization of oil and gas pipeline monitoring systems in each stage of its life cycle. The table below indicates the Boston Matrix Model that Abuja will adopt Stars Question Marks Cash Cows Dogs Strategic implication of Boston Matrix Model on the Abuja Energy surveillance for the next 10 year will lead to maintenance of the firm’s competitive advantage that is related to its control over the oil, gas theft and spillage along pipelines. It will manage to impact on its ten years strategic market share plan for the system since it will incorporate mature market. This means that the company is not a new entrant in the market, and it can only move on without challenges that can hinder it to develop the strategic market plan for the next ten years. The company has the opportunities of using drones and Geographic Information System for managing oil, gas theft and spillage along the pipelines and their goals is likely to be achieved within the specified timeline. Since the company has been operational for a longer time, challenges are solved when they emerge and thus the ten-year strategic plan being obtained by the specified deadline. Since the enterprise has established a strategy to deal with theft and spillage of the pipes, prevention of environment degradation is one of the impacts that are going to be achieved. For example, air and water pollutions are going to be minimized since the industries can embark on the strategies set. For example, pollution will be controlled through immersion of carbon (Henderson, 2004). Water is polluted due to spillage of oil, and this can only be curbed if pipes that transport oil are going to be lick proof and use the synchronization mode of oil transportation. The ten-year strategic market plan will also help Abuja Energy Surveillance to decide the product line that is beneficial to the company. For example, in the case of the cash cow it will involve market share that has low growth market since the company dominates the market. This scenario can improve the strategic plan of the organization and since it is going to expand other projects instead of investing the profit gained (Baets andLinden, 2003). This has an impact on the company based on the fact that the company can be funded to start other projects that can help reduce oil and gas theft and the spillage along pipelines. Additionally, they are the market dominant thus they have the competitive advantage over the other companies. Boston Matrix Tool will provide a snapshot of the current position of the system developed by Abuja Energy Surveillance Limited helps to assess the company prospects. This is will involve determining whether the company is showing future prospect. The market share is typically associated with competitive power; competitiveness of the company is conducted in the market so that the business can come up with the strategy that can be used to achieve the competitive advantage. If the growth rate of the business seems to be relative to the market share by checking the BCG four quadrants that are divided into two dimensions, then the company can notice whether the portfolio is balanced or unbalanced. Unbalanced business portfolio indicates the business has a lot of problems and many dogs. This means that few cash cows and stars are available. Another application that can be used by Boston Matrix Tool in the business is “build” strategy. This indicates that the question marks that have small market share but has increased and high growth in the market can be transformed into stars. The stars are known due to high absolute market share that results to high growth. Whenever the question marks are converted to the stars, the firm can attain the competitive power and thus the management can carry the business without threats that emanate from the competitors (Scott and Roderick, 1994). The third application that is used by the Boston Matrix Tool is the “hold” strategy. The approach applies in the cash cows quadrant since it can generate a lot of cash with an aim of preserving the market share. In the business portfolio, it indicates that whenever an industry has generated a lot of cash, it is important to start other projects that can create cash by investing. The cash created by the enterprise does not need to be used in that business rather it should open other projects that can generate cash and create opportunities for the entire company and individuals. The fourth application of the Boston Matrix Tool is “harvest” strategy that indicates that there is short-term cash that is flowing quickly in the business portfolio. The cash can be used in the business and thus no growth rate can be noticed since the question marks can no longer turn to stars and dogs. The fifth strategy that is used in the Boston Matrix Tool is the “divest” strategy and is only applied to the question marks quadrant. This means that the question marks cannot be turned to be stars, dogs or cash cows. In the business portfolio, it is applied by the managers since in this divest strategy all the products that are consuming the company resources must be removed and diversified to other business so that they can create greater benefits. The project life cycle management technique that is used in the Boston Matrix Tool starts by the stars. The stars are known in the business simply because they have the best market share, and they generate a lot of cash to the enterprise. The stars have a high growth rate, and this is why they consume a lot of cash in the company. The stars in the firm are the cash that is coming in and the same cash that is going out and thus no profit or loss that is gained. If the growth rate is declined in the market, then the stars can be the stars, firms are advised to take advantage when the market growth rate is dropped and invest in the stars. The recommendation for the successful commercialization of oil and gas pipeline monitoring system in the stars stage in terms of the finance is to come up with transmission of oil and gas using synchronization mood (Ebnesajjad, 2013). The method is efficient since oil and gas pipeline are first inspected to avoid the spillage and then later it is transmitted to the designated location. The second life cycle involves the cash cows, these are known as the leaders in the market since they generate a lot of cash rather than what they consume. They are characterized by high market share and low growth rate. The life cycle can sustain the firm in all the activities since they generate a lot of cash, and managers are advised to invest in this life cycle since they can maintain the firm productivity. The company supply chain for the system is recommended in this stage so that successful commercialization of oil and gas pipeline monitoring system can be achieved (Besson, 2005). This can only be done by marketing the oil and gas to the other states and the oil and gas transmitted which can later result in a lot of cash after using a slight figure through marketing techniques. Dogs are characterized by a low share in the market and low growth rate. They do not consume any resources for the firm, but they remain stagnant hence considered as trap since firms resources are trapped there. In this stage manufacturing can be under the dog's stage since oil and gas can be extracted but remain un- transported due to lack of sufficient market (Inkpen and Moffett, 2011). This means that the company resources are trapped but later it can result to cash cows. The strategies required for successful commercialization of oil and gas pipeline monitoring systems in manufacturing systems can come up with machines that can detect any spillage of oil and gas while transporting it. Question marks are characterized by high growth, but the market share is always little. They are known for consuming a lot of resources but return little to the firm. For example in the company where the human resource does not cooperate with others, employees mean that the resources of the firm are going to be used but little production can be achieved resulting in loss. The recommendation for it to be successful in this stage is to come up with digital recording of what has been done in the firm and use of automated machines to manufacture and transport oil and gas via the pipelines. Conclusion Oil and gas transportation faces a lot of challenges since individual engages in theft of the pipes that result to spillage. This results in environmental degradation and even death if it is unnoticed. Proper mechanism to deal with oil and gas can be beneficial to the environment and individuals internationally since it is a challenge globally. For the next 10 years, Abuja is focused at maintaining competitive position by ensuring that there is adequate control of gas theft, and spillage along the pipelines. As noted in the paper, Boston Matrix Tool has been an important tool for providing the snapshot about the company’s future strategic position. For example, the matrix has indicated how Abuja Energy Surveillance Limited may use build and hold strategies to face off their competitors and to improve the performance of its operations. It is recommendable for firms in the oil transport industry to emulate Abuja Company in order to have a significant control of saving of oil resources and curb carbon emission globally. References Baets, W., & Linden, G. 2003. Virtual Corporate Universities A Matrix of Knowledge and Learning for the New Digital Dawn. Boston, MA: Springer US. Besson, C. 2005. Resources to reserves oil & gas technologies for the energy markets of the future. Paris: OECD/IEA. Ebnesajjad, S. 2013. Introduction to fluoropolymers materials, technology, and applications. Amsterdam: Elsevier Science & Technology. Henderson, D. 2004.The Product Portfolio.Available From http://www.ukessays.com/essays/marketing/product-life-cycle-and-boston-group-portfolio-matrix-marketing-essay.php Inkpen, A., & Moffett, M. 2011. The global oil & gas industry management, strategy & finance. Tulsa, Okla.: PennWell. Scott, A. and Roderick J. 1994. Effects of portfolio planning methods on decision making: experimental results. 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