Bcg matrix example coca cola. BCG Matrix: Definition, Examples, And Learn How To Use It? 2022-12-17

Bcg matrix example coca cola Rating: 5,5/10 1429 reviews

The BCG matrix, also known as the Boston Consulting Group matrix, is a tool used by businesses to assess the performance and potential growth of their product lines or business units. It is based on the idea that a company's products can be classified into four categories: dogs, stars, question marks, and cash cows.

The BCG matrix is a two-dimensional graph, with market growth rate on the y-axis and relative market share on the x-axis. Products or business units are plotted on the graph based on their performance in these two categories.

A product or business unit that has a high market share in a low-growth market is classified as a cash cow. These products or units generate a steady stream of cash for the company and are important for maintaining the company's financial stability.

A product or business unit that has a low market share in a high-growth market is classified as a question mark. These products or units have the potential for significant growth, but also carry a high level of risk because they are not yet established in the market. The company will need to invest heavily in these products or units in order to capture market share and drive growth.

A product or business unit that has a high market share in a high-growth market is classified as a star. These products or units are the drivers of the company's growth and generate a significant portion of its profits. The company will need to continue investing in these products or units in order to maintain their market leadership and drive further growth.

Finally, a product or business unit that has a low market share in a low-growth market is classified as a dog. These products or units do not have much potential for growth and may even be a drain on the company's resources. The company may consider divesting these products or units in order to focus on more promising opportunities.

An example of how the BCG matrix can be applied to a specific company is by looking at Coca-Cola, one of the world's most well-known and successful brands. Coca-Cola is a global company that produces a wide range of nonalcoholic beverages, including carbonated sodas, juices, sports drinks, and teas.

Using the BCG matrix, we can classify some of Coca-Cola's products into the four categories. For example, Coca-Cola's flagship product, Coca-Cola Classic, is a star. It has a high market share in the carbonated soft drink market and is a well-established brand with a loyal customer base. The company will need to continue investing in this product in order to maintain its market leadership and drive further growth.

On the other hand, Coca-Cola's juice products, such as Minute Maid and Simply, may be classified as question marks. While the juice market is growing, these products have relatively low market share compared to other players in the industry. The company will need to invest heavily in these products in order to capture market share and drive growth.

Coca-Cola's sports drink, Powerade, may be classified as a cash cow. While the sports drink market is growing, Powerade has a strong market share and generates a steady stream of cash for the company. However, the company will need to be careful not to let this product become a dog by failing to innovate and keep up with changing consumer preferences.

Overall, the BCG matrix is a useful tool for businesses to assess the performance and potential growth of their product lines or business units. By understanding where each product or unit falls on the matrix, a company can make informed decisions about how to allocate its resources and drive growth.

Ejemplo de Matriz BCG aplicado a Coca Cola

bcg matrix example coca cola

A slowdown in sales has been a temporary setback for the organization, however adjusting the business strategy has helped the management to regain its firm hold in the industry Estrel, 2016. Google Drive and Docs have potential and high market growth, but face less money back due to high market share of their competitor. In the BCG matrix of Coca-Cola, the bottled water segment is categorized as star products. The following article will fully explain the outstanding features and analyze the example of this model in a typical business for you to have a clearer view. In order to stay at the top of your game, it is recommended to create BCG Matrix diagrams using EdrawMind. If the market is highly fragmented, however, absolute market share can be used instead.

Next

Bcg Matrix For Coca Cola

bcg matrix example coca cola

Dogs quadrant — Diet Coke Diet coke is a BCG matrix example of the dog quadrant in the Coca-Cola company. Growth rates determine the additional cash needed to keep a share. They can grow and expand their market share because they attract high-quality customers and provide superior value to these customers. These products are geared towards growing healthy non-carbonated drinks and healthy lifestyles. Did you know that over 500 hours of content is uploaded to YouTube every minute? Thus, making it dominant in the relative market share. They have a high market share in the industry, and the forecasts suggest low chances of significant growth in the future. About its safety and the ethics of the company that produces it, it is widely accepted as the most dominant soft drink in the world today.

Next

BCG Matrix explained in a Practical way with Real Examples.

bcg matrix example coca cola

Take some time to learn about it, and see how you can put it to use in your own business. Growth and expansion is touching the sky for this one. Hence, businesses need to invest the necessary amount in maintaining the current competitive advantage and earning more passive money. These divisions are excellent candidates for sale. From there, save a lot of resources and investment capital for products with no potential, and focus on profitable trading products.

Next

Coca Cola BCG Matrix Analysis

bcg matrix example coca cola

Market share is low, but the market is growing very strongly. As indicated by Kell 2015 the brand has received relatively favourable response in the past, however recent data shows that the brand is losing its popularity. Following is a quick representation of a BCG Matrix: 2. Coca-Cola life is a brand that has been launched with the aim of targeting the market that is seeking low calorie soda. El producto es bueno, se mantiene en el mercado, el consumidor lo compra como alternativa, pero no se vende mucho. The BCG matrix assigns each product a letter designation based on its market share A, B, C, or D and its profitability high, medium, low, or no profits.

Next

What is the BCG matrix of Coca Cola?

bcg matrix example coca cola

This Matrix is mainly used by the management team of the company to assess the current state of the product and service offering of the company. BCG matrix stands for Boston Consulting Group matrix - and is also the global management consulting company that founded the BCG matrix, also known as the Boston matrix or growth matrix - market share. The bottled water produced by the Coca-Cola Company can be categorized as a star for the organization. The health conscious consumers formulate a significant part of the industry, suggesting the growth potential, but diet coke has not been able to tap this market potential to gain sustainable revenues. Then you need to do market research first , in order to know if your investment will pay off at some point.

Next

BCG Matrix: Explained with Examples & Templates

bcg matrix example coca cola

For example: Apple TV is a new product line from Apple with large market potential but small current market share and profits, so it should be classified in the Question Marks. Check out the stars: The products or business units that have a high market share in high growth industry are the stars of the organization. Bottlers then sell, distribute, and market Coca-Cola to retail stores, restaurants, and vending machines around the world. The market has growth opportunities, but these products have not been able to take benefit of these opportunities in an effective manner. Since the industry is mature, the company needs to invest little effort to keep the sales high as the business unit has captured a large market to generate cash. See more: What Is Flowchart? How To Set Up The BCG Matrix To set up a BCG matrix, you first need to determine the two most important parameters: the business's relative market share and the industry growth rate.


Next

BCG Matrix: Definition + 5 Examples of use in 2022!

bcg matrix example coca cola

They outline the three main strategic options open to organization that wish to achieve a sustainable competitive advantage. The suppliers are not concentrated or differentiated. They contribute to the growth of the company. After all, it is a tool to help at decision-making to arbitrate future investments and determine the next marketing efforts. To use the BCG matrix, first, you need to determine which quadrant your business falls into. Coca-Cola as a beverage has been operating as a cash cow for the Coca-Cola Company, as the brand is sold across 200 countries in a mature beverage industry. Introduction The Boston Consulting Group BCG growth-share matrix is a business planning tool that helps a business prioritize its products by investment and ROI.

Next

Assessment of BCG Matrix, its need and application

bcg matrix example coca cola

Question Mark The products in the Question Mark category have a smaller market share even in the expanding market. Ghulam Ahmad Rana By Wajid Ali Roll No. Coca Cola has grown from a small firm to a multinational company with a global presence from this humble beginning. Calculate Relative Market Share Stage 4. Stars depict those products performing well and have started showing significant growth. The primary reason for the BCG Matrix is accordingly to settle on speculation choices on a corporate level.


Next

BCG Matrix of Coca Cola in a Simplified Way

bcg matrix example coca cola

Products or business units of the company that are still in the nascent stage of their product lifecycle and can either become a revenue generator by taking the position of a Star or can become a loss-making machine for the company in the future. They are the flagship products currently of a company. BCG Matrix Examples A BCG Matrix shows how a matrix is separated into four quadrants dependent on an investigation of market development. Coke has been in the market for years and has achieved a leading position in the market in terms of the carbonated soft drink segment. The matrix assess products on two dimensions. Similarly, when some products exceed your expectations and improve sales, they reach their maturity phase and become Cash Cows. Why is the BCG Matrix useful? By joining these two factors into a matrix, an organization can plot their specialty units as needs are and figure out where to dispense extra financial assets, where to money out, and where to strip.

Next