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Strategic Management Unit 3 DB SA Third Week - Essay Example

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Based on the information provided in the matrix above, it can be seen that the BCG matrix is a reliable strategy for companies in as far as their operations are concerned. For instance, Cadbury Chocolate milk can be regarded as cash cows. This industry is mature and it is…
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Strategic Management Unit 3 DB SA Third Week
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BCG Matrix Market growth Market share Source: http www.bcg-matrix.com/ a) The stars – high market share and high growth rate b) The cash cows- market share is high but growth rate is low.
c) Question mark- low market share but high growth rate
d) Dogs: low market share and low growth rate
Based on the information provided in the matrix above, it can be seen that the BCG matrix is a reliable strategy for companies in as far as their operations are concerned. For instance, Cadbury Chocolate milk can be regarded as cash cows. This industry is mature and it is comprised of stiff competition. Therefore, it is wise to generate a high market share given that the growth rate is now low. This helps the company to be in a better position to generate more revenue in its operations which can help to sustain itself. This product can also be categorised as star under the BCG matrix given that it would be comprised of a high market share and high growth rate. This can be achieved through product development where the same product is developed to attract more customers (Kotler & Armstrong, 2004). Market development can also be utilised where the same market can be increased in order to generate more revenue
Cadbury yoghurt snacks can either be categorised as cash cows or question marks. If the product has reached a mature stage in its life cycle, then it is likely to generate more revenue though market growth would be low. On the other hand, this product can be classified as question marks if it is still in the growth stage of its life cycle. This means that the product would be comprised of low market share and high growth rate. As more people become aware of the product, they are likely to buy it which leads to high market growth.
References
BCG Matrix: “The growth share matrix.” Viewed from: < http://www.bcg-matrix.com/ >.
Kotler, P. & Armstrong, G. (2004). Principles of Marketing. Pearson Education. NJ: Upper Saddle
River. Read More
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