Terms of reference This report describes the marketing plan for Virgin Media a major player in the Digital television market in UK. It provides television, broadband, fixed line telephone and mobile telephone services in the UK.
If you are working with a product portfolio you have a range of tools at your disposal to determine how each one or a group of the products are doing. Back in a clever chap from Boston Consulting Group, Bruce Henderson, created this chart to help organisations with the task of analysing their product Bcg matrix of bskyb or portfolio.
The matrix assess products on two dimensions. The first dimension looks at the products general level of growth within its market. Analysing products in this way provides a useful insight into the likely opportunities and problems with a particular product.
Lets have a look at what each one means for the product and the decision making process. Stars high share and high growth Star products all have rapid growth and dominant market share. This means that star products can be seen as market leading products. These products will need a lot of investment to retain their position, to support further growth as well as to maintain its lead over competing products.
This being said, star products will also be generating a lot of income due to the strength they have in the market. The main problem for product portfolio managers it to judge whether the market is going to continue to grow or whether it will go down.
Star product can become Cash Cows as the market growth starts to decline if they keep their high market share. This is due to less competitive pressures with a low growth market and they usually enjoy a dominant position that has been generated from economies of scale.
Cash cows are still generating a significant level of income but is not costing the organisation much to maintain. Dogs low share, low growth Product classified as dogs always have a weak market share in a low growth market. These products are very likely making a loss or a very low profit at best.
These products can be a big drain on management time and resources. The question for managers are whether the investment currently being spent on keeping these products alive, could be spent on making something that would be more profitable. The answer to this question is usually yes.
Problem Child low share, high growth Also sometime referred to as Question Marks, these products prove to be tricky ones for product managers. These products are in a high growth market but does not seem to have a high share of the market.
The could be reason for this such as a very new product to the market. If this is not the case, then some questions need to be asked. What is the organisation doing wrong?
What is competitors doing right? It could be that these products just need more investment behind them to become Stars.
A completed matrix can be used to assess the strenght of your organisation and its product portfolio. Organisations would ideally like to have a good mix of cash cows and stars.22 BCG Product portfolio (Dibb, Simkin, Pride & Ferrell, 45) LFC currently operate a balanced product portfolio with an equal amount of revenue streams coming from stable cash cow sources, and unstable question mark sources.
defining the product and market portfolio, the Boston Consulting Group Matrix defines the mature industries (or ―Cash Cow‖) in the following manner: mature products that make lots of money, difficult to grow, difficult to find new.
87 CONTESv BOSTON CONSULTING GROUP MATRIX. D. uring the s, the Boston Consulting Group (BCG ) developed an approach to strategic analysis that compares a firm’s market share to the antici-.
In the year , British Sky Broadcasting Group plc performance was excellent under tough environment. Demand is rising overall products range more customer joining sky.
This year's financial result was better than the previous 2 years.
In the report “The BCG Growth Matrix for BSkyB” the author critically examines the BCG growth/share matrix for the British Sky Broadcasting Group Plc. Marketing Theories – Boston Consulting Group Matrix. Visit our Marketing Theories Page to see more of our marketing buzzword busting blogs..
If you are working with a product portfolio you have a range of tools at your disposal to determine how each one or a group of the products are doing.