1. PORTFOLIO ANALYSIS
- By Prof. Purvish Shah
BE ( Mech), PGDBM (Gold Medalist)

2. -Product Life Cycle: It is a life span through
which a product needs to move.
Introduction Growth Maturity Decline
Product
Few
products
More
product/Mor
e features
differentiation
important
Reduced
Price High/Low
Based on
demand
price
reduction
Low
Distribut
ion
Selective
More
intensive
new channels Selective
Promoti
on
Building
awareness
sales is
target
brand loyalty Low

3. Portfolio Matrix : Popularly known as BCG matrix
-Developed based on product life cycle theory
by Boston Consulting Group.
-What are the priorities for a company in given
product portfolios
- Helpful in long term value creations for a
company

4. STAR ? ? ?
Cash Cow Dogs
Low
Low
High
High
Market
Growth
Rate
Relative Market Share
Cash
Usage
Cash Generation

5. Dogs:
-Low market share
-Low Growth rate
-Cash trap for companies
Question Marks:
-Fast growing
-Consumes major cash
-Either become Dog or Star ( high risk)

6. Stars:
- Generate Cash
- High cash consumption
- If taken care becomes Cash cow
Cash Cow:
-Generate more cash than consume
- Help other business grow

7. BCG matrix for ITC ltd.
-ITC is formally known as Indian Tobacco
company.
-Company is in to diverse business portfolio
like Hotels, Greetings, Cigarettes, Agarbatti,
Specialty papers, Agricultural business,
Cloths, Sports wear, FMCG products and
Infotech business.

8. STAR
Hotels, papers,
Agri business
? ? ?
Agarbatti,
Cloths
Cash Cow
Cigarettes, FMCG
Dogs
Infotech
Low
Low
High
High
Market
Growth
Rate
Relative Market Share
Cash
Usage
Cash Generation

9. BCG matrix for MARUTI SUZUKI
Models available:
Swift, Zen estillo, Swift Desire, sx4,
grand vitara, A STAR, ALTO, 800,
Wagon R, Versa, Baleno, Omni

10. STAR
SWIFT, ZEN
ESTILO, DESIRE
? ? ?
SX4, GRAND
VITARA, A STAR
Cash Cow
800, ALTO,
WAGON R
Dogs
BALENO, VERSA,
OMNI
Low
Low
High
High
Market
Growth
Rate
Relative Market Share
Cash
Usage
Cash Generation

11. LIMITATIONS:
-Only two factors taken in to consideration.
- Data accuracy becomes very important
- Business of low over all market share may
also be profitable ( specialty/niche segments)
- It ignores effect of synergy between
different business.