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SHRI SIDH THAKURNATH COLLEGE OF

ARTS & COMMERCE,

ULHASNAGAR 421 0042015-2016

NAME: paa! "#" $%a'a()

CLASS: M-COM *+ART I*SEM-1

ROLL NO: 156111

SU./ECT: 'a')3 #a(a#('

+RO/ECT TO+IC: p'!) a(a!) $3

#a')7 a(8 #a')79

SU.MITED TO: a%a a;!a()

CERTIFICATE

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This is to certify that the project report titled Portfolio Analysis

BCG Matrix & GE Matrix has !een co"pleted satisfactorily in

partial f#lfill"ent of M$C%M PART I co#rse of the ni'ersity of

M#"!ai( for the acade"ic year )*+,-)*+. !y PA/A0 MEG1RA2

B1AGTA3I a st#dent of 4$4$T Colle5e of Arts and Co""erce(

lhasna5ar 6 7** **7$

------------------------------

-----------------------------Signature of External GuideSignature of Internal Guide

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Table of Contents

Sr No. Particulars Page No

1 Introduction to BCG 5

2 Strength & Weakness of BCGMatri

!

" #$$lication to Co%$etitieIntelligence' #uto%otie Industr(

12

) G*+Mc,inse( Matri 1)

5

Strengths and Weaknesses

1!

- #$$lication to Co%$etitieIntelligence' #$$le Inc

2

/ BCG Matri s. G*+Mc,inse( Matri 22

0 Conclusion 25

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Introdution to !CG

$ompetitive ntelligence .$/ often re0uires a great deal of analysis to convert gathered

information into useable intelligence" #everal different analytical techni0ues can be

utilied in order to accomplish this task" This project looks at two analytical techni0ues

the 3oston $onsulting Group .3$G/ 4atrix and the G'54c6insey 4atrix their

respective advantages and disadvantages what $ situations they are best suited for and

provides an example of their use when applied to the $ scenario of the S"art#hone

industr$%

!a&'round

The 3$G 4atrix .Growth+#hare 4atrix/ was created in the late 1789s by the founder of

the 3oston $onsulting Group 3ruce Henderson as a tool to help his clients with efficient

allocation of resources among different business units" It has since !een #sed as a

portfolio plannin5 and analysis tool for "ar8etin5( !rand "ana5e"ent and strate5y

de'elop"ent$

n order to ensure successful long+term operation every business organiation should have

a portfolio of products5services rather than just one product or service" This portfolio

sho#ld contain !oth hi5h-5ro9th and lo9-5ro9th prod#cts:ser'ices$ High+growth

products have the potential to generate lots of cash but also re0uire substantial amounts of

investment" &ow+growth products with high market share on the other hand generate lots

of cash while needing minimal investment"

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(ow it Wor&s

The 3$G 4atrix helps a company with multiple business units5products by determining

the strengths of each business unit5product and the course of action for each business

unit5product" n understanding of these factors will give the company the highest

probability of winning against its competitors since the intelligence generated can be used

to develop portfolio management strategies"

The 3$G 4atrix helps managers classify business units5products as low or high

performers using the following criteria would be placed in the

high growth segment of the 3$G 4atrix"

This classification places business units5products in the following four categoriesinsey Matrix is a far "ore sophisticated and po9erf#l tool than the BCG

Matrix !eca#se it ta8es into consideration "ore factors to "eas#re the "ar8et

attracti'eness ?external factors@ and the stren5th of each 4B ?internal factors@$ n the

G'54c6insey 4atrix market attractiveness and competitive strength substitute the 3$G=s

market growth and market share respectively"

Another difference is that GE:Mc>insey is a "atrix 9hile the BCGs is a ))" This

allows for more sophistication" 3eing more complex the framework takes a longer time to

be implemented since the retrieval of all the necessary information could be lengthy"

3ecause of that in certain cases corporations can either loose the proper time to market or

at the end of the collection process the data could be already old and thus not useful

anymore"

nother drawback of the tool is that it co#ld !e "isleadin5 if not #sed properly"

ssigning weights and scoring factors can be a very difficult work and has to be done by

expert hands" Ihen these are not done in the right way results can lead executives in the

wrong direction" %ften companies need to rely on external consultant organiations to get

the necessary professionalism"

The 3$G 4atrix=s advantage is being a simple and effective tool" The market sie of the

business unit and the market share of the business under analysis are easily retrievable

factors and the framework provides executives with a 0uick and valuable overview of the

#3@=s position" The G'54c6insey and the 3$G models can be effectively used in

intelligence projects in different ways" nstead of considering only internal #3@s

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compared to the market an effective approach would be to use the frameworks in

analying the competitive landscape" This way corporations can see where internal #3@s

stand compared to competitors="

deally the two tools can be used together in se0uence to take advantage of each other=s

strengths" For example initially when considering a large number of competitor=s

products the 3$G 4atrix can be adopted as a first step" The easy and 0uick approach that

is the main advantage of this model would let corporations perform a first skim thus

reducing the number of #3@s under analysis from many to just a few" The remaining

competitors can be thoroughly analyed with the G'54c6insey 4atrix which provides a

better and more inclusive framework"

Ihen running intelligence projects a particular attention should be given to the type and

0uality of data that is used with these tools" The data has to always be validated with a

non+correlated secondary source of information and corporations should tap both into

internal and external data to get a broader picture" 3elow is an example of internal and

external sources that could be used

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