3.0 BCG Analysis
Pride and Ferrell (2010, p.35) states that Boston Consulting Group (BCG) approach is based on the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy. A company’s business units can be categorized into four categories which are stars, cash cows, question marks and dogs. On the vertical axis (Refer to figure 1), market growth provides a measure of market attractiveness while on the horizontal axis, market share provides a measure of company strength in the market. By using BCG analysis, the management team of
Malayan Banking Berhad (Maybank) can decide which products within their company need to have more funding and attention.
3.1 Stars
Peter …show more content…
Cash cow is in a low-growth market, but the product has a high market share. For Malayan Banking Berhad (Maybank), their cash cows are financial investments portfolio. Financial investments portfolio has 19.2% of their overall assets (Refer to figure 2) in the year 2013 compared with the year 2012 which has 18.8% of their overall assets, where there was 0.4% in growth. The reason financial investments portfolio is their cash cows is because Malayan Banking Berhad (Maybank) they don’t invest in a new project that has an unforeseen future but once a project became matured, they start to invest in it and it generates a lot of cash for the company, that is why it has low-growth and …show more content…
It has low-market share in a high-growth industry, they need a lot of cash to support, without cash support, they eventually become dogs. For Malayan Banking Berhad (Maybank), their question mark is cash and short-term funds. Cash and short-term funds have 8.5% of their overall assets (Refer to figure 2) in the year 2013 compared with the year 2012 which has 8.0% of their overall assets, where there was 0.5% in growth. The reason cash and short-term funds is their question mark is because Malayan Banking Berhad (Maybank) does not hold cash and short-term funds for a long time in hand, instead they use the money to invest in somewhere else in order to earn interest or return, that is why cash and short-term funds have low-market share but have high-growth because the money was invested in various projects. Besides, the coin deposit machine (Refer to figure 4) of Malayan Banking Berhad (Maybank) is one of their question mark because it is very convenient and useful, people can make transactions using coins in a large amount, that is why it has high-growth but
Pride and Ferrell (2010, p.35) states that Boston Consulting Group (BCG) approach is based on the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy. A company’s business units can be categorized into four categories which are stars, cash cows, question marks and dogs. On the vertical axis (Refer to figure 1), market growth provides a measure of market attractiveness while on the horizontal axis, market share provides a measure of company strength in the market. By using BCG analysis, the management team of
Malayan Banking Berhad (Maybank) can decide which products within their company need to have more funding and attention.
3.1 Stars
Peter …show more content…
Cash cow is in a low-growth market, but the product has a high market share. For Malayan Banking Berhad (Maybank), their cash cows are financial investments portfolio. Financial investments portfolio has 19.2% of their overall assets (Refer to figure 2) in the year 2013 compared with the year 2012 which has 18.8% of their overall assets, where there was 0.4% in growth. The reason financial investments portfolio is their cash cows is because Malayan Banking Berhad (Maybank) they don’t invest in a new project that has an unforeseen future but once a project became matured, they start to invest in it and it generates a lot of cash for the company, that is why it has low-growth and …show more content…
It has low-market share in a high-growth industry, they need a lot of cash to support, without cash support, they eventually become dogs. For Malayan Banking Berhad (Maybank), their question mark is cash and short-term funds. Cash and short-term funds have 8.5% of their overall assets (Refer to figure 2) in the year 2013 compared with the year 2012 which has 8.0% of their overall assets, where there was 0.5% in growth. The reason cash and short-term funds is their question mark is because Malayan Banking Berhad (Maybank) does not hold cash and short-term funds for a long time in hand, instead they use the money to invest in somewhere else in order to earn interest or return, that is why cash and short-term funds have low-market share but have high-growth because the money was invested in various projects. Besides, the coin deposit machine (Refer to figure 4) of Malayan Banking Berhad (Maybank) is one of their question mark because it is very convenient and useful, people can make transactions using coins in a large amount, that is why it has high-growth but