PRESENTED TO PROF.

AMIT ABHYANKAR Group Members

NIKUNJ SHAH B- 24 HEMRAJ BIJARNIA B-3

ATAL SINGH B-34

BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.

It is a portfolio planning model which is based on the observation that a companys business units can be classified in to four categories:

Stars Question marks Cash cows Dogs

It is based on the combination of market growth and market share relative to the next

best competitor.

Mahindra Group is one of the largest corporate groups of India. It is a US $6.3 billion conglomerate with employee strength of over 50,000.
It is ranked amongst Forbes Top 200 list of the World's Most Reputable Companies and in the Top 10 list of Most Reputable Indian companies.

The origin of Mahindra group can be traced back to Oct 2, 1945, when Mahindra brothers J.C. Mahindra & K.C. Mahindra joined hand with Ghulam Mohammad, there after Mahindra & Mohammad was set up as a franchise of assembling JEEPS from WILLYS, USA.After independence of India in 1947 , Mahindra & Mohammad changed its name to Mahindra & Mahindra.

Automobiles Farm equipment Trade & finance Infrastructure IT Other specialty business

Mahindra Automobiles have a strong and growing presence in international markets

Yugoslavia, Bangladesh Sri Lanka Australia Uruguay South Africa in 2004 (Mahindra South Africa) Europe in 2005 (Mahindra Europe)

Tractors
Two Wheelers Utility Vehicles

AMGR of Tractor industry = 18% Market share of M&M = 29% (Market Leader) 2nd largest player is Tafe group (messy tractor) Market share of Tafe group = 23% RMS of M&M Tractor = 1.26x

LOW
Business growth Rate

HIGH 16%

10%

12%

18%

20%

14%

10x

4x

2x 1x

0%
Relative Market share

2%

4%

6%

8%

HIGH LOW

0.5 x 0.4 x 0.3

x 0.2 x 0.1 x

TRADITIONAL BCG MATRIX

AMGR of two wheelers industry = 12% Market Share of M&M two Wheelers = 1% Market Share of Hero Honda = 52% RMS of M&M two wheelers = 0.02x

LOW
Business growth Rate

HIGH 16%

10%

12%

18%

20%

14%

10x

4x

2x 1x

0%
Relative Market share

2%

4%

6%

8%

HIGH LOW

0.5 x 0.4 x 0.3

x 0.2 x 0.1 x

TRADITIONAL BCG MATRIX

AMGR of Utility vehicle industry = 8.7% Market Share of M&M Utility Vehicle = 42% (Market Leader) Market Share of Tata Motors in UV = 21% RMS of M&M Utility Vehicle = 2x

LOW
Business growth Rate

HIGH 16%

10%

12%

18%

20%

14%

10x

4x

2x 1x

0%
Relative Market share

2%

4%

6%

8%

HIGH LOW

0.5 x 0.4 x 0.3

x 0.2 x 0.1 x

TRADITIONAL BCG MATRIX

Conclusion
SBU AMGR M&M mkt Share (a) Largest Competit or Mkt. share (b) 23% 52% 21% X = a/b

TRACTORS

18% 12% 8.7%

29% 1% 42%

(TAFE)

1.26 0.02 2.00

TWO WHEELERS UTILITY VEHICLES

(HERO HONDA)

(TATA MOTORS)

LO W
Business growth Rate

HIG 16% H 14%

10%

12%

18%

20%

10x

4x

2x 1x

0%
Relative Market share

2%

4%

6%

8%

HIG H LO W

0.5 x 0.4 x 0.3

x 0.2 x 0.1 x

TRADITIONAL BCG MATRIX

APPROPRIATE STRATEGIES
TRACTORS (WEEK STAR) HOLD STRATEGY (Invest to protect)
Build capacity expansion Increase investment Increase advertisement and promotion Increase market reach

TWO WHEELERS (WEEK ?) Exceptional case (Money hogger) Product is in early stage Try to build it and turn in to STAR Invest intensively

UTILITY VEHICLES (STRONG CASH COW) HOLD STRATEGY (INVEST TO PROTECT)

Increase advertisement and promotion Increase market reach Increase Investment