Bcg Growth Shrare

Topics: Strategic management, Tata Motors, Growth-share matrix Pages: 2 (461 words) Published: April 7, 2013
By the BCG growth share matrix shown in figure. The six circles represent current size and position of six segment of TATA commercial vehicles business in Bangladesh. The maping of the each business segment indicate its market growth rate and relative market share. The market growth rate on the vertical axis indicates the annual growth rate of the market in which the business segments operates. It ranges from 0 to 5. A market growth rate above 2.5 is considered high and bellow is low. Relative market share, wich is measured in the horizontal axis, refers to the business market share relative to that largest competitor in the segment. It indicate the company’s strength in the market segment. A relative market share of 0 to 5 means the competitive situation in the market and achieved market share in each business. Relative market share is drawn in log scale and divided into high and low share. The growth share matrix divided into four cells. Each indicating a different type of business: Question marks

Business that oprate in high-growth markets but have low market share. A question mark requires a lot of investment reason to keep up with the fast growing market. Because it wants to grab its position from the market leader. The company has to think hard whether to keep puring money into this business. TATA motors operates two question marks which is TATA NANO and TATA BUS. STARS

The market leaders in ahigh-growth market. A star does not necessarily produce a positive cash flow for the company. The company must spend extensive fund to keep up with the high market growth and relative market share and to fight off competitors attacks. TATA MOTORS has 2 stars –Intermidate Commercial Vehicles (ICV) and Low Commercial Vehicles (LCV). CASH COWS

Stars with a falling growth rate that still have the largest relative market share and producing lot of cash for the company. Company does not have to finance expansion because the market growth rate has slowed. Because the...
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