The Boston consulting group a leading management consulting firm develops and popularized the growth share matrix as shown in figure. BCG MATRIX of Telecommunication companies:
According to the Pakistan telecommunication authority, the relative market share and market growth rates of different telecommunication companies are given below:- Name| Relative Market Share| Market Growth Rate|
Mobilink| 37%| 21.03%|
Ufone| 21%| 29.15%|
Telenor| 20%| 69.37%|
Warid| 17%| 45.85%|
Zong| 3%| 285.60%|
BCG MATRIX Figure:
Market growth rate| Highlow| Star * Telenor * Warid| ??? * Zong| | | Cash Cow * Mobilink * UFone| Dog|
High low Relative Market Share
There are the conclusions for the telecommunications companies, how they are lying in the BCG matrix is given below:
The market share value of mobilink is high and relative market growth rate of mobilink is low, that is why mobilink is lying in BCG Matrix in Cash cow point. At this point, mobilink made their further investment in other products and improve their services to high their relative market shares and achievement of Star point in BCG matrix.
The market share value of Telenor is high and relative market growth rate of Telenor is high, that is why Telenor is lying in BCG Matrix in Star point. At this point, Telenor provide extra services and improve their network coverage in different cities to stable their position at Star point in BCG matrix. 3. UFone:
The market share value of ufone is high and relative market growth rate of ufone is low, that is why ufone is lying in BCG Matrix in Cash cow point. At this point, Ufone made further investment in improvement in quality of...