Thursday, December 24, 2009

BCG Matrix of telecommunication companies in pakistan



Stars - SBU's placed in this cell are highly attractive because the industry in which they are located is robust and the business has a strong competitive position in the industry. Stars generate large amounts of cash, but also require heavy investment to continue to grow and to maintain competitive positioning.e.g. Warid

Cash Cows - These SBU's are the corporation's key source of cash, and are typically the core business. They possess a strong competitive position, but are located in an industry that is mature, not growing or declining. A Cash Cow generates more cash than it requires, providing funds to the corporation to invest in other ventures. E.g. Mobilink

Question Marks - When a business is located in a growing industry, but has not achieved a strong competitive position, an attempt to evaluate further investment is shrouded by ambiguity as to eventually becoming a "winner". These are termed "Question Marks" because they deserve attention to determine if the venture can be viable.E.g Zong

Dogs - A business situated in a low growth or declining industry, such as at the decline stage, has a precarious future. If the business has not already developed a strong competitive advantage, it should be divested. E.g. Paktel

9 comments:

Sami Ullah Baig said...

the examples of Question Marks & Dogs are mention same .the paktel corp is Aquistioned by the zong corp....

Syed Ahmad Hashmi said...

Magnificent work Qamar. The way in which you illustrated these telecommunication companies in pakistan through the boston's matrix gives very useful info regarding each of these and through this catagorization every marketing student can easy guess what the marketing strategy would be for that particular SBU i.e Mobilink. Keep the good work going.

Haider said...

I'm sorry, but I don't think you understand the meaning of SBU. They are units (i.e departments/product lines etc that operate entirely differently, but within the same company /organization). The BCG matrix is used by companies to workout new strategies for their SBUs.
Besides, you have just given a definition of each sector(which we already know) and assigned a telecommunication company to it. There is no mention of why or how you decided to do that. A good idea would be to look up a BCG of a company e.g. Nestle, Apple, Sony etc. This would give you a good idea of how a BCG works.

Rana Aqeel Akhtar said...

haider u may be right...but in our management class sir Bashir has also given us this example. so i don't know how is right or wrong. in this post author (Qamar) is just giving us an overall view of BCG matrix. which according to me is right as mobilink is cash cow for all the telecommunication companies of Paakistan.

Haider said...

i didn't attend that course but i'm sure it must have been in reference to something. As you can see, my point makes sense. BCG, as we have studied quantifies SBUs (belonging to the same org/com) into 4 categories, as to better strategical analysis and decision making.

Syed Ahmad Hashmi said...
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Syed Ahmad Hashmi said...
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bilawal formanite said...

Good work qamar.If anybody is not clear he can consult marketing book page 38.

Haider said...

@ Bilawal: I'm not sure you understood........ BCG Matrix is used by companies to workout new strategies for their SBUs, i.e. units (i.e departments/product lines etc that operate entirely differently, but within the same company /organization)....... These companies are separate entities, with different operating functions.