Bkg matrix of strategies for each type of product. Formation of an ideal portfolio according to the bkg model and the development of strategic decisions in the analysis of the matrix

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To analyze the relevance of the company's products, based on their position in the market relative to the market growth of these products and the market share occupied by the company selected for analysis.

This tool is theoretically grounded. It is based on two concepts: product life cycle and economies of scale or the learning curve.

The matrix displays market growth (vertical axis) and market share (horizontal axis) along the axes. The combination of estimates of these two indicators makes it possible to classify a product, highlighting four possible roles of a product for a manufacturing or selling company.

Classifications of types of strategic business units

"Stars"

High growth in sales volume and high market share. Market share must be maintained and increased. Stars are very profitable. But, despite the attractiveness of this product, its net cash flow is quite low, since it requires significant investments to ensure a high growth rate.

"Cash cows" ("Moneybags")

High market share but low sales growth. Cash cows need to be protected and controlled as much as possible. Their attractiveness is explained by the fact that they do not require additional investments and at the same time provide a good cash income. The proceeds from the sale can be directed to the development of “Difficult Children” and to support the “Stars”.

"Dogs" ("Lame Ducks", "Dead Weight")

The growth rate is low, the market share is low, the product is usually of low profitability and requires a lot of managerial attention. You need to get rid of the "Dogs".

"Difficult Children" ("Wild Cats", "Dark Horses", "Question Marks")

Low market share but high growth. “Difficult children” need to be studied. In the future, they can become both stars and dogs. If there is a possibility of transferring to the stars, then you need to invest, otherwise - get rid of.

disadvantages

• Strong simplification of the situation;
• The model takes into account only two factors, however, a high relative market share is not the only success factor, and high growth rates are not the only indicator of market attractiveness;
• Failure to take into account the financial aspect, removal of dogs can lead to an increase in the cost of cows and stars, as well as negatively affect the loyalty of customers using this product;
• The assumption that market share is equal to profit, this rule may be violated when introducing a new product to the market with high investment costs;
• The assumption that the market decline is due to the end of the product's life cycle. There are other situations in the market, for example, the end of a rush in demand or an economic crisis.

Advantages

• theoretical study of the relationship between financial receipts and the analyzed parameters;
• objectivity of the analyzed parameters (relative market share and market growth rate);
• clarity of the results obtained and ease of construction;
• it allows you to combine portfolio analysis with a product life cycle model;
• simple and easy to understand;
• it is easy to develop a strategy for business units and an investment policy.

Construction rules

The horizontal axis corresponds to the relative market share, the coordinate space is from 0 to 1 in the middle with a step of 0.1 and further from 1 to 10 with a step of 1. The estimate of market share is the result of the analysis of sales of all industry participants. The relative market share is calculated as the ratio of own sales to sales of the strongest competitor or the three strongest competitors, depending on the degree of concentration in a particular market. 1 means that own sales are equal to sales of the strongest competitor.

The vertical axis corresponds to the growth rate of the market. The coordinate space is determined by the growth rates of all the company's products from maximum to minimum; the minimum value can be negative if the growth rate is negative.

For each product, the intersection of the vertical and horizontal axes is established and a circle is drawn, the area of ​​which corresponds to the share of the product in the company's sales.

Links

• Practical methods for the development and analysis of the company's product strategy based on internal secondary information

Notes (edit)

Wikimedia Foundation. 2010.

See what the "BCG Matrix" is in other dictionaries:

MATRIX "GROWTH-MARKET SHARE", or BCG matrix- one of the most common, classic tools of marketing analysis, and in particular portfolio analysis of the company's strategies. The matrix received its fame and name thanks to the work of the Boston Consulting Group (BCG, or, in Russian, Boston ... ...

MATRIX BCG (BOSTON CONSULTATIVE GROUP)- a two-dimensional matrix, with the help of which it is possible to identify the winners (market leaders) and establish the degree of balance between enterprises in the context of the four quadrants of the matrix: enterprises that have won large market shares in growing sectors ... ... Big Dictionary of Economics

Matrix BCG (English Boston Consult Group, BCG) is a tool for strategic analysis and planning in marketing. Created by the founder of the Boston Consulting Group, Bruce D. Hendersen, to analyze the position of the company's products on the market ... ... Wikipedia

- (product market matrix) an analytical tool for strategic management, developed by the founder of this science, an American of Russian origin Igor Ansoff, and designed to determine the strategy of product positioning ... ... Wikipedia

PORTFOLIO ANALYSIS- [eng. portfolio analysis portfolio analysis] in marketing analysis of types of products (types of activities or types of projects) using the classification of all product markets of the company according to two independent measurement criteria: market attractiveness and ... ... Marketing. Big explanatory dictionary

Bruce D. Henderson Bruce D. Henderson Business: Entrepreneur, author of the BCG Matrix, founder of the Boston Consulting Group Date of birth: 1915 (1915)… Wikipedia

Hendersen, Bruce D Bruce D. Henderson Bruce D. Henderson Occupation: Entrepreneur, author of the BCG Matrix, founder of the Boston Consulting Group Date of birth: 1915 ... Wikipedia

The May issue of the magazine will focus on the BCG matrix, a marketing tool used to bring products and services to market. We will consider the algorithm for constructing this matrix, draw conclusions from the analysis results and, using a practical example, form an optimal portfolio of additional services provided by an autonomous institution.

The BCG Matrix is ​​a strategic analysis and planning tool in marketing. It was created by the founder of the Boston Consulting Group, Bruce D. Hendersen (from the name of the group and the abbreviation occurred) and is used to analyze the relevance of a product or service or the stage of the life cycle in which the organization is located, based on the dynamics of the development of a particular market and the share of the organization on it. ...

For an autonomous institution, the BCG matrix will help determine which additional paid services need to be developed and supported, and which services it is advisable to refuse, since they do not bring the desired income.

The matrix displays the market growth rate (vertical axis) and relative market share (horizontal axis) along the axes. Scores for these indicators allow you to classify a product or service, highlighting their possible roles for the organization.

Basics of construction and interpretation of the matrix

The BCG matrix (shown below) is divided into four quadrants, in each of which the products and services of the studied institutions (or the institutions themselves) are placed.

The Cash Cows quadrant includes organizations with a high market share in a slow-growing market, and those products and services that have a large market share but have a slow growth in sales. Such organizations are highly profitable, do not require investment, and such services generate good income that can be directed to the development of other quadrants.

The Stars are leaders in a rapidly growing market. Their profitability is high, but they need investments to maintain their leading position. When the market stabilizes, the stars will turn into cash cows.

"Question marks" (in other words "difficult children", "wild cats") are organizations and services that hold a small share in a rapidly growing market. They have a weak position, so they have a high need for funding.

The Dogs quadrant contains organizations and services with a small share of a slow-growing market. They are usually unprofitable and need additional funding to maintain their positions. So, "dogs" can be supported by large organizations if the former are associated with the activities of the latter (for example, they carry out warranty repair of their products).

The BCG matrix assumes that organizations and services typically go through a complete life cycle. They start out as "question marks", then, if successful, become "stars", when the market stabilizes, they turn into "cash cows", and end their cycle with "dogs."

However, the path of an organization can change depending on the actions of management and the influence of the competitive environment. In particular, "question marks" may not become "stars" but fail and become "dogs". In turn, the "stars" as a result of certain changes may return to the position of "question marks", and not go into the category of "cash cows". A similar metamorphosis can occur with the "cash cow", which will become a "star" after modernization. "Dogs" are the least susceptible to change - if successful, they can only move into the category of "question marks".

Thus, based on the analysis using the BCG matrix, the organization can change its strategy. Depending on which quadrant a particular institution falls into, its strategic behavior can be predicted.

The BCG matrix allows you to choose from four strategies:

1. "Stars" are looking for additional funding necessary to expand their presence in a particular market (increasing the scale of production, the volume of services provided). That is, the task here is to maintain and increase the market share.

2. "Cash cows" do their best to maintain their market share, they are ready to direct excess funds to the development of other areas and to conduct research and development.

3. "Question marks" need targeted financial investments to move to "stars" or maintain existing market share. Otherwise, the institution will have to reduce this direction.

4. "Dogs" are forced to be liquidated if there are no special reasons for their preservation.

Construction of the BCG matrix using the example of a medical institution

Currently, most medical institutions have the ability to introduce and provide paid services, and the range of these services is often different. Using the example of a municipal hospital, we will consider the following paid services:

1) dental;

2) paid preventive examinations;

3) X-ray room services;

4) ultrasound examinations;

5) laboratory services (general blood and urine tests, blood sampling from a vein, biochemical blood test);

6) endoscopy (gastroscopy, colonoscopy);

7) physiotherapy (massages);

8) nutrition academy.

Analysis stages

The construction of the BCG matrix takes place in six stages. First - collecting the necessary information(sales data).

The second stage produces calculation of the sales growth rate.

Further market share is calculated occupied by this or that service (third stage). To do this, you need to know the sales volumes of the main competitors of the municipal hospital for each specific service. Let's say, after analyzing the collected data, the institution has determined that its services occupy the following market shares:

Fourth stage - construction of the BCG matrix by sales volume... Knowing the relative market share of the service provided and the rate of market growth (sales volumes), the institution can determine the place of each service in the BCG matrix and, accordingly, in its portfolio of offers. The corresponding quadrant should reflect the name of the service, the volume of sales and the total volume of sales per group. After analyzing the data obtained, you can determine how balanced the organization's portfolio is, correctly prioritize the development of services and highlight the key areas for the institution.

The fifth stage - construction of the BCG matrix by profit... An analysis of this indicator allows one to judge the possibility of initial financing and further financial support for new services of the institution, and also helps to prioritize the support of certain types of services.

Finally, at the sixth stage, a final analysis is carried out, conclusions are drawn and the institution's strategy is being developed (adjusted).

Analysis results

According to the data obtained when constructing the BCG matrix, the following can be identified:

1. In the "Stars" position there are endoscopy and nutritional academy services. This means that they occupy a relatively large share of the supply among paid medical services provided by the hospital, with a fairly high rate of development. The institution should support and strengthen this direction, not reduce, but, possibly, increase investments in it.

The best resources of the organization (personnel, research and development, money) should be allocated to these areas. Services- "stars" are future stable source of funds for the institution.

2. Ultrasound, laboratory tests and physiotherapy procedures take the position of "dairy cows". That is, these services have a stable position among all the offers of the institution, they are the main generators of profit. These areas are represented by a fairly large assortment, but are characterized by a negative growth rate.

It does not require large investments - only to maintain the current level of sales. Institution can use the proceeds from the sale of such services to develop their promising areas- "stars" or "question marks".

3. Finding X-ray diagnostics in the "question mark" quadrant indicates that this service is in a transitional stage - it is starting to lose its relative share among hospital services. Activities that fall into this quadrant require large investments in order to grow in line with the market and strengthen their position in it.

When any direction falls into this quadrant, the institution must decide are there sufficient resources now to develop the service?... If funds are available, they are directed towards enhancing the key advantages of the service, an intensive increase in its market share. If the organization does not have sufficient resources, the service does not develop.

4. Services in the "dog" position include preventive examinations and dentistry. This quadrant focuses on services with a low market share in slow-growing or stagnating markets. These areas usually bring little profit and are not promising for the organization. However, this is not the case in our case. These services belong to the main areas of activity and should not be taken out of the market. They bring significant income, but their demand is low.(at least on a paid basis). Therefore, the management of the institution should think about the current situation and take the necessary measures (for example, reduce the cost of the service).

Thus, an organization's ideal portfolio of proposals should consist of two groups:

1) services capable of providing the institution with free financial resources for investment in development ("stars" and "cash cows");

2) services that are at the stage of implementation or growth, need funding and can create the basis for the future stability and sustainability of the organization ("question marks").

In other words, the services of the first group ensure the current functioning of the organization, and the services of the second group - its future income.

Key findings for the healthcare facility

The construction of the BCG matrix allows us to make the following conclusion: in the example under consideration, the portfolio of services is quite balanced. But the institution needs to master new directions and strengthen the position of new products - "question marks".

More detailed conclusions are formulated in the table.

The BCG matrix offers next set of follow-up actions institutions on the market:

1. Services located in the "Stars" quadrant should be maintained, their positions should be strengthened.

2. If possible, expand the range of paid medical services from the "Dogs" quadrant. This will allow them to be categorized as "Question marks" or "Cash cows".

3. Services located in the "Cash cows" zone need to be tightly controlled - to monitor changes in their market share and sales growth rates.

The change in the service portfolio in this example is mainly associated with the displacement of previous methods of diagnosis and treatment by modern methods used with the use of high-tech equipment purchased by the institution. Most likely, such a policy has developed under the influence of competition, since the list of services for which a low growth rate of sales is observed in a municipal hospital is offered by almost all medical institutions. Therefore, a more thorough study of the needs of the hospital's clients is necessary (through surveys, questionnaires and other methods). And the old tactics, when a formed set of services is offered, no longer justifies itself.

The considered portfolio of proposals allows us to conclude that at this time the institution is using a strategy of mass undifferentiated marketing. That is, the hospital, ignoring the differences in the segments of the target audience, addresses the entire market with the same services. At the same time, the emphasis is not on how the needs of individual groups of consumers differ, but on what is common in these needs. As a result, the hospital provides services that are perceived positively by the widest possible range of consumers. But if a similar strategy is chosen by other hospitals, this leads to increased competition and reduced income. Small segments are also lost.

Thus, in order to maintain a stable market share and develop paid medical services, the institution needs to adhere to a more thoughtful marketing policy.

The BCG matrix is ​​a unique matrix that helps to build a diagram and analyze all market segments based on source data. The matrix was created by the Boston Consulting Group, from where it got its name.

It makes it possible to correctly analyze the market mathematically and choose the necessary measures for the further development of various products in the future.

It sounds a little confusing, but in fact, everything is a little simpler than it seems at first glance. The matrix strategy assumes that all products belong to only four groups:

· "dogs"- goods that represent an insignificant market share in their segment of low growth rates; these products are less promising, so the production of this segment will not be successful;

· "Difficult children"- goods that can quickly break out into a promising segment, but still occupy a small part of the entire market; goods with a good pace of development, but requiring financial and investment;

· "Cash cows"- a segment of the market with a constant, but insignificant income, which does not require any investment; their share is significant, but in a weakly growing market segment;

· "stars"- goods with a significant share of a rapidly developing market, which have the greatest success; from the first days they bring good income, and future investments in this segment can only increase profits.

The ratio of the growth rate relative to market segments can be displayed:

The essence of the BCG array is to find a specific market segment to which the original group or a single product can be attributed.

Let's try in practice to implement this procedure through the Excel functionality:

1. Let's create a table in which we will display the original products with information about the number of sales of the current month and the past, as well as the lowest price of these products from a competitor.

2. We calculate the growth rates of these goods on the market and their relative share. We divide the number of sales for the current period by the amount for the previous period, and, accordingly, the amount of sales of the current period for sales from competitors.

3. The next step is to build a diagram based on the information received. Use a bubble chart - "Insert" - "Chart" - "Others" - "Bubble".

4. Let's select the necessary injections. Let's open the functions and point to the "Select data" item.

5. In the data selection window, click on "Modify" and begin to fill in the changes to the row of the bubble chart.

6. In the "Name of the row" set the cell "Name". “X-values” will be pulled up from the “Relative market share” column, in “Y-values” - “Market growth rate”. "Bubble sizes" will be taken from the "Current period" range. This completes the entry of values ​​and form a diagram.

7. Do the same for all groups and get the final bubble chart. It remains only to correctly configure the axes.

8. It is necessary to slightly correct the axes. To begin with, in the horizontal axes, change the "Minimum value" to "0", "Maximum" - to "2", and "Division" to "1".

9. In the settings of the vertical axes, set the "Minimum" to 0, "Maximum" to "2.18", and divisions to "1.09". These indicators are calculated from the average indicator of the relative market share, which must be multiplied by 2. "Divisions" are also set to "1.09". The last thing we will indicate - "Axis value" - "1.09", respectively.

10. It remains to sign our axes and you can proceed to the direct analysis of the BCG matrix.

The BCG matrix makes it possible to carry out a quick and correct analysis of market segments.

In our case, we see that:

"Product 2" and "Product 5" belong to the group of products "Dogs" - they do not make a profit. They are not popular in the market, so they are no longer interesting to us in the future sales strategies.

"Product 1" is a representative of the "Difficult children" group, which means that the product, with proper development and funding, can be profitable, but this will not happen in the near future.

“Product 3” and “Product 4” - “Cash cows” - excellent revenue makes it possible to develop other categories, while not investing in this segment.

“Product 6” is the only one that fully belongs to the “Stars” category - its excellent opportunity to make a profit keeps the entire business, and additional investments in this segment will only help to improve the financial position.

Thus, it is possible to conduct a significant analysis of market segments and obtain the necessary conclusions for each group of goods using the BCG matrix. The construction of the matrix should not cause any particular difficulties, but it is worth considering that you need verified initial data and indicators, because they are the basis of the matrix.

When constructing the BCG matrix, the relative market share is plotted along the horizontal axis, and the market growth rate along the vertical axis. The horizontal axis is divided into two zones: a zone of high relative market share (> 1) and an zone of low relative market share (< 1). Вертикальная ось также разделяется на две зоны: зону высокого темпа роста рынка (>105%) and an area of ​​low growth rate (< 105%). Таким образом, полученная матрица состоит из четырех квадрантов (рисунок 3).

Figure 3 - Template of the BCG matrix

"Stars" are the most promising activities of an organization that occupies a leading position in a rapidly developing industry. They generate significant profits, but at the same time require significant amounts of resources to finance continued growth. As the industry slows down, the star is turning into a cash cow.

Cash cows dominate mature, saturated, stagnant markets. Due to their high market share, cash cows have significant cost savings and generate more revenue for the organization than is required to maintain their market share.

“Question marks” do not have a good competitive position, but they operate in promising fast-growing markets. They require large investments to increase market share.

"Dogs" are the most hopeless types of activity. They have a weak competitive position in an established or shrinking industry.

To construct the BCG matrix, it is necessary to first calculate such indicators as "Relative share of the agricultural market" and "Share of the agricultural market". The calculation is made according to the formulas:

SHP sales volume

Relative market share of agricultural products =

SHP sales volume

SHP market share =

Market volume

Table 9 shows the necessary data and the results of calculating the described indicators.

Table 9

Using the data in Table 10, we construct the BCG matrix (Figure 4). The diameter of the bubbles corresponds to the capacity of the SCS market (it is signed for each of the bubbles and serves as a determinant of a specific SCS in the diagram).

Figure 4 - BCG Matrix

Analysis of the BCG matrix makes it possible to distinguish 4 groups of SCS and propose appropriate strategies for them.

For Zvezd, an adequate strategy is “Growth and Increase in Market Share”. In this case, the "Stars" are SHPs with numbers 4 and 7.

In the upper right quadrant there are SHPs with numbers: 1, 3 and 5. In accordance with the classification, they are recognized as "Question marks". Depending on the prospects of each of these agricultural enterprises, for them it is possible to offer both the “Growth and increase in market share” strategy, as well as “Harvesting” or “Cutting off”. For the choice of a specific strategy, the initial data of the task is not enough.

The last group of SHP - "Dogs". These are units with numbers 2, 9, 10. For them, the recommended strategy is "Cut".

In addition, the portfolio includes SHP # 8, which is based on the re-combing of axles. Formulating an unambiguous strategy is difficult for him.

Characterizing the attractiveness of the portfolio as a whole, one can note its insufficient quality. Thus, “Dogs” are widely represented in the structure of agricultural enterprises, and the share of “Stars” and “Cash cows” is small. At the same time, the market share of agricultural products belonging to the "Dogs" is significant.