BCG MATRIX CASE STUDY OF NESTLE
BCG Matrix(Boston consulting Group )
• In the late 1960s the Boston Consulting Group, a leading management consulting company, designed a four-cell matrix known as BCG Growth/Share Matrix. This tool was developed to aid companies in the measurement of all their company businesses according to relative market share and market growth.
• The BCG Matrix made a significant contribution to strategic
management and continues to be an important strategic tool
used by companies today. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The development of the matrix requires the assessment of a business portfolio, which include an organization’s
autonomous divisions ( activities, or profit centers).
BCG MATRIX of Nestle
• According to Nestle, the relative market share and market growth rates of different products are given below:
Name Ceralac Nestle Milk Kit Kat Maggi Noddles Nestle Dahi
Relative Market Share 31.2% 21% 19% 18.76% 3%
Market Growth Rate 45% 39% 34% 64% 12%
BCG MATRIX Figure
Nestle Milk Kit Kat Dog Nestle Dahi
Cash Cow Maggi Noddles
Relative Market Share
Ceralec: • Ceralec is one of the leading baby food products. It has witnesses quite a long hold on market share and it s a major contributor for Nestle. Nestle Milk and Kit Kat:
• Relative market share of
and Kit Kat is low as
compared with its growth that’s why they are lying under head Question mark.
Maggi Noddles: • Growth rate of Maggi Noddles is low as compared with its Relative market share that’s why they are lying under head Question mark. Nestle Dahi: • Its both relative market share and growth rate are low as compared
with other products that’s why it is lying under head...
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