BCG Matrix of Amul
BCG growth-share matrix is based on the observation that the company’s business units can be classified into 4 categories ( Dogs, Stars, Cash Cows and Question Mark) based on combinations of growth rate and market share which is relative to the largest competitor, hence the name came in as a growth-share matrix.
These are the products with low growth or market share
Dogs are those products that have low growth or market share and have a very limited chance of growing into a profitable business unit for the company.
Limited chances of growth mean that the management needs to be very cautious with the investment decisions in this business unit or product as it will not yield any greater benefit to the organization. would need.
These business units or products are cash traps and will not yield any profit for the organization and therefore are not seen as a useful source of earning.
Cash Cows
These are the products which are in low growth markets with high market share.
When the market share of a product is high and is being sold in an industry that is not expected to see any significant growth in the future, then the product can be considered as a Cash Cow.
Cash Cow business units or products are the best revenue generators for the organization and require very low investment to sustain their profitability.
Since the market share of these business units or products is not expected to experience massive gains but their current market position makes them a high revenue generator.
Star
These are the products which are in high growth markets with a high market share.
There are some products which have high market share and have the potential to grow more in the future. The industry dynamics are also supportive of the growth as the industry is in the phase of development as well. These products have the potential of being positioned as cash cows owing to the growth prospects.
Question Mark
Products in high growth markets with a low market share.
These are the business units or products which are the problem child for an organization because of the uncertainty that they hold. Either these products or business units can become a revenue generator for the company by taking the position of a star or can become a source of loss for the company.
The industry has high potential to grow hence giving the room to the products to grow as well, if the pertinent issues are managed effectively.
Since we have understood the 4 Quadrants of the BCG Matrix,
Let’s check out the BCG Matrix of Amul and what all products of the company fall under what Quadrant.
Cash Cows:
There are three products of Amul that fall under cash cow category, the first being Amul Milk and the second being Amul Butter and third is Amul Cheese.
The products hold high market share in these not so fast-growing industries.
Owing to the limited chances of industry growth, Amul is introducing a number of new product variations for different customer segments so as to maintain its market leadership.
For Example: Apart from its basic version of Butter and Milk, Amul also launched, Amul Butter Lite, Amul Tazza Milk and Amul Gold Milk to target customers who are more health conscious.
stars:
Amul Ice cream and Amul Ghee are two products that can be considered as Stars of the company. These are the products which have a high market share and holds a good potential to grow in the future as well.
Question Mark:
Amul lassi has been marketed with the aim to increase the market share and compete with the other beverages available to the market.
Considering the increasing interest and demand for healthy products and beverages, the healthy milk from Amul poses a great potential to grow in the near future with a condition that it is marketed well.
DOGS:
Dogs are those products that have low growth or market share and have a very limited chance of growing into a profitable business unit for the company.
Amul Chocolates, Amul Cookies, and Amul Pizza are few products which can be considered as Dogs for Amul.
Due to the heavy competition and limited innovation that these product categories face, it’s becoming difficult for Amul to gain market share for these products and make them a viable revenue generator.
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