Tag Archives: Bcg Matrix

by | August 29, 2012

Case Study for 3.5 BCG Matrix for Starbucks

Starbucks Corporation is an internationalcoffeehouse chainbased inSeattle,Washington,United States. Starbucks is the largestcoffeehousecompany in theworld, with 16,120 stores in 49 countries, including around 11,000 in the UnitedStates, followed by nearly 1,000 inCanadaand more than 800 inJapan.Starbucks sellsdrip brewed coffee,espresso-based hot drinks, other hot andcold drinks, snacks, and items such as mugs and coffee beans. Through theStarbucks Entertainment division andHear Musicbrand, the company alsomarkets books,music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brandice creamand coffee arealso offered at grocery stores. Starbucks’ Italian style coffee, espressobeverages, teas, pastries and confections had made Starbucks one of thegreatest retailing stories of recent history and world’s biggest specialty coffeechain. In 2003, Starbucks made the fortune 500.




BCG Matrix for Starbucks

In 1971, three academics, English Teacher Jerry Baldwin, History Teacher ZelSiegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice inTouristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet(whom they knew personally) to sell high-quality coffee beans andequipment. The store did not offer fresh brewed coffee by the cup, but tastingsamples were sometimes available. Click here to read more…



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by | August 16, 2012

Case Study in New BCG Matrix

The Boston Consulting Group (BCG) was the inventor of this portfolio management matrix. Using this growth-share approach, a company classifies all its Strategic Business Units (SBUs). On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share gives an indication of the company strength in the market. Read more…

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by | July 24, 2012

Case Studies Of BCG Matrix

The Boston Consulting Group (BCG) was the inventor of this portfolio management matrix. Using this growth-share approach, a company classifies all its Strategic Business Units (SBUs).

On the vertical axis, market growth rate provides a measure of market attractiveness.
On the horizontal axis, relative market share gives an indication of the company strength in the market.

The matrix is divided into four quadrants:
1. Stars: High growth products that need heavy investment. Over time, their growth slows down turning them to cash cows.
2. Cash Cows: These are low growth, high market share products. They require less investment to hold onto their market share. For instance, products from reputed companies like J&J, P&G, etc. Cash Cows support other SBUs because of their goodwill and market share.
3. Question Marks: Low market share business units in high growth markets. Investment is needed to hold their share, building them into stars.
4. Dogs: Low growth and low market share businesses and products. They generate just enough cash to maintain themselves. They are generally on their way out.

for more info Case Studies Of BCG Matrix

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