Cash Cows Some products that are being manufactured by an organization take a leading position for the firm in terms of generating sales and revenues.
BMW Sedan is specifically a popular car among the consumers in different parts of the world.
The demand for SUV may increase, helping the company to improve its market share. DeMattia has stated that the financial performance of Rolls Royce division indicated the setup of record sales in the fiscal yearwith the highest consumption of the luxury car in the US. All these products or business units are considered as cash cows.
BMW mini is another vehicle that can be placed in this quadrant due to its financial performance and future growth prospects. The BMW Z3 and Z4 cars have been identified as dogs as these vehicles have not been able to gain similar amount of sales as generated by the other brands being produced by the company.
The investment in BMW Mini is deemed as a profitable decision by the management, which has sold an average ofSince these products are in high demand, the company is able to secure higher sales and return on investment ROI from these items as compared to its other product ranges.
References BMW Group BMW profit up on Rolls-Royce boost, beating views. The company has expanded the product line, adding new designs of the BMW mini, strengthening the performance of its star product. There are many products being managed by BMW which can be identified as Stars.
Introduction BMW has been able to create market image as an automobile manufacturer that offers the customers with vehicles that bring them comfort, along with a sense of luxury.
The SUV business unit may be able to improve its financial performance in the coming months. As a result, these items are seen as adding long term value to the firm. Question Marks There are some products which do not show same level of promising future as indicated by cash cows and stars. The main feature of stars is that their industry has the possibility of further growth, thus causing an increase in market share.
This segment has been a prime source of financial earnings, driving the company towards growth over the years. The BCG matrix is a useful tool when a business plans to analyze its products and identify the growth chances of its different business segments. The BCG matrix is elaborated is as follows: The performance of these vehicles was not up to the performance standard that other BMW cars have established, making the Z3 and Z4 gain negative feedback from the customers.
For instance, cars included in BMW series 5 such as Sedan and Touring are some of the cars that have been performing well. Instead, these items show poor performance in terms of sales, revenues and future prospects.
According to BMW Groupthere has been a significant increase in sales of its Sedan brand over the past few years, hinting at the high consumer demand. In some cases a company continues to invest in these businesses, while in other cases the management decides to dissolve the business unit or sale it.
BMW has some products which are high cash creating business units, thus earning the status of cash cows for the company. Instead, these products have a high degree of uncertainty, making them a part of the question mark quadrant.
These characteristics make the cash cows a suitable option for generating income to finance other business units.
This category includes all those business units or items that do not yield financial gain for the company. Another element which makes these products a probable option for divestment is the low ROI as the company sees these items as cash traps.
These products are the emerging items that have good growth prospects in the future. The framework divides products or business segments into cash cows, stars, question marks and dogs. The industry has the potential to further grow, suggesting at the future promotion of SUV brand into a leading position in the global automotive industry.
The company needs to maintain steady investment in these categories in order to make sure that the stars can become cash cows. In case of success, these items may provide the firm with the financial leverage, while the inability to gain a strong market share can make these products a financial burden for the firm.BCG MATRIX Boston Consulting Group (BCG) Matrix or also called BCG model relates to marketing.
This model is a known as portfolio management tool that used in product life cycle theory. This model is a known as portfolio management tool that used in product life cycle theory. BCG Matrix The BCG matrix developed by The Boston Consulting Group is “the best known and most often applied” product portfolio model nowadays (Mooradian, Matzler, & Ring, ).
It describes the growth rates and market shares for the products carried by. Boston matrix on BMW. comparative portfolio analysis By Becky, Lily and Owen Boston Matrix What is Boston Matrix?
•.examines if BMW has a balanced portfolio •.categorizing products as question marks. •.interrelated with the product life cycle. cash cows or dogs. stars.3/5(2). bcg matrix • boston consulting group (bcg) matrix is developed by bruce henderson of the boston consulting group in the early ’s.
• According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market killarney10mile.com AHMED ARAFA. “The BMW Group is the world’s leading provider of premium products and premium services for individual mobility of the today’s drivers.
In doing so, the BMW Group will exceed customers’ expectations for quality, technology, and affordability while obtaining sustainable profitability.
BMW Open Branding Strategy. Published on November 19, ; BCG Matrix & BMW. Let’s have a look at the famous BCG Matrix, and the correlation of the market share versus the business growth.Download