BCG matrix The Boston Consulting Group matrix allows a multinational company to manage its portfolio by studying the relative market share and the industry growth rate of each division relative to all other divisions in the organization. It consists of 4 basic elements: 1. Question Marks(?)- falls in Quadrant I that has a low relative market share position but compete in a high-growth industry. 2. Stars- falls in Quadrant II that has a high relative market share and even has a high-growth industry
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JetBlue Contents Memorandum 3 Summary of Strategy Assessment and Identification of Strategic Issues 3 Key Strategic Issue‚ Options and Recommendations for Action 3 Best Option Recommendation 4 I. Case Update (Exhibit 1) 5 Bibliography 7 II. JetBlue’s Strategy in Detail (Exhibit 2) 8 Mission/Purpose/Vision 8 Goals/Objectives 9 Major Policies 9 III. JetBlue’s SWOT Analysis (Exhibit 3) 11 IV. Analysis of JetBlue’s Financial Performance (Exhibit 4)
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tremendously as people are afraid to fly even 7 years later • Security- Due to the attacks of September 11th airlines have had to increase security which is absorbed by the airline • Price of fuel- Along with the price of unleaded gasoline‚ the price of jet fuel has also sky rocketed I believe that JetBlue is one of the few airlines that have continued to earn a profit while maintaining/increasing its customer following. The company is doing everything that it needs to do to stick to its mission of
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Introduction: The BCG Matrix and the Product Life Cycle are two important tools that relate to different aspects of a product’s performance: • The BCG looks at market share and market growth and how they impact on cash usage and generation. • The PLC looks at sales/revenues over time and levels of profitability. Boston Consulting Group (BCG) Matrix Businesses must keep their product offerings relevant and profitable to stay in operation. The Boston Consulting Group developed a tool‚ called the BCG matrix
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David Neeleman‚ founder of JetBlue airline‚ garnered support for his new airline in part using inspirational appeals directed at investors and politicians‚ as well as potential partners. He managed to convince skeptics that he could make his idea of a low cost airline work. Some say Neeleman was successful by “sheer force of his personality” (Kreitner‚ 2005‚ p. 378). Neeleman’s primary power base of reference as can be seen in the way airline employees view him. Tom Krizek‚ JetBlue pilot‚ said‚
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BOSTON CONSULTING GROUP MATRIX ( BCG ) This technique is particularly useful for multi-divisional or multiproduct companies. The divisions or products compromise the organisations “business portfolio”. The composition of the portfolio can be critical to the growth and success of the company. The BCG matrix considers two variables‚ namely.. N MARKET GROWTH RATE N RELATIVE MARKET SHARE The market growth rate is shown on the vertical (y) axis and is expressed as a %. The range is set somewhat
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the Jet Blue case was former CEO David Neeleman. He was the person who started Jet Blue and formed it to become a low cost airline provider‚ providing luxury and comfort and destinations to various cities at a low affordable cost. He understood how to cut cost and keep operating expenses low‚ and as a result Jet Blue had rapid expansion and flew to 53 destinations in 21 states‚ including Mexico‚ Puerto Rico‚ and the Caribbean. Up until 2007‚ when David Barger took over‚ Neeleman made Jet Blue prosperous
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To begin with‚ BCG is the acronym for Boston Consulting Group—a general management consulting firm highly respected in business strategy consulting. BCG Growth-Share Matrix (see figure 1) happens to be one of many of BCG’s strategic concepts the organisation developed in the late 1970s‚ and is being taught at leading business schools and executive education programmes around the world. It is a management tool that serves four distinct purposes (McDonald 2003; Kotler 2003; Cipher 2006): it can
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The company I chose to conduct my BCG Matrix on was Wal-Mart‚ because this company has become one of the largest and most successful companies within the United States. Wal-Mart started out as a small retail business in 1962 in Rogers‚ Arkansas by Sam Walton. Today Wal-Mart has more than 10‚000 stores in more than twenty eight different countries. In 2012 Wal-Mart gained revenue of $421‚849 million dollars‚ which was an increase of 3.4% from the previous year. (www.topics.nytimes.com>Business>Companies
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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. Conti… • The BCG Matrix made a significant contribution to strategic management and continues to be an important strategic
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