1. BY:-
APUR DESHMUKH
CHIRAGDEEP SINGH
LOKESH SAHANI
PIYUSH MALANI
MOHD. AARIF KHAN
RAHUL VED

3. SBU Sales Number Sales of the Annual RELATIVE
MARKET log
(Rs. of Co. top 3 Co. market
SHARE
mn) (Rs. bn) growth
0.7, 0.7, 0.5
A 0.5 8 15% 0.5/0.7= -0.146
0.714
B 1.6 22 1.6,1.6, 1 18% 1.6/1.6= 0.00
1
C 1.8 14 1.8,1.2, 1 07% 1.8/1.2= 0.176
1.5
D 3.2 05 3.2 , 0.8 ,0.7 04% 3.2/0.8 = 0.6020
4
E 0.5 10 2.5, 1.8 ,1.7 04% 0.5/2.5 = -0.698
0.2

4. 20%
(0.00,18%)
PRODUCT SALES GROWTH RATE
(-0.146,15%)
10%
(0.176,7%)
(-0.698,4%)
(0.6020,4%)
0%
1 0 -1
RELATIVE MARKET SHARE

5. - Recommendation
- INCREASE MARKET SHARES AND THUS TRY TO
GET INTO STARTS QURDRANT.
- Solution
- TO INCREASE MARKET SHARES THEY NEED CASH
WHICH CAN BE EXTRACTED FROM THE CASH COW
SBU viz. C & D.

6. - Recommendation
- MAINTAIN THEIR MARKET POSITION AND TRY TO
INCREASE MARKET SHARES. THUS TRY TO GET
FURTHER INTO THE STAR QURDRANT AS MUCH AS
POSSIBLE BEFORE ENTERING INTO THE CASH
COW.
- Solution
- THEY ARE ALREADY IN THE STAR QURDRANT AND
THUS THEY CAN FINANCE THEMSELVES FOR
INCREASING THEIR MARKET SHARES. IF NEEDED
THEN THEY CAN TAKE CASH FROM THE CASH
COWS viz. D & C.

7. - Recommendation
- SBU “C” IS ABOUT TO ENTER INTO THE DECLINE
STAGE i.e. DOG QUARDRANT, THUS THEY ARE
RECOMMENDED TO START HARVESTING WITH
THAT SBU. SO THE CASH GENERATED CAN BE
USED BY SBU “A” & “B”.

8. - Recommendation
- SBU “D” IS WELL IN THE CASH COW QURDRANT,
THUS THEY ARE RECOMMENDED TO HOLD THAT
MARKET POSITION AND START HARVESTING WITH
THAT SBU. SO THE CASH GENERATED CAN BE
USED BY SBU “A” & “B”.

9. Recommendation

SBU “E” IS IN THE DOG QURDRANT, THUS THERE ARE

NO REAL GROWTH OPPORTUNITIES AVAILABLE. SO
THE COMPANY SHOULD USE LEAST FUNDS AND
WORKFORCE ON THIS SBU AND SHOULD DIVEST IT
AS SOON AS THEY GET THE BEST PRICE.

10. ANS. YES, THE COMPANY IS HAVING A VERY
HEALTHY MIX AS THEY HAVE ALL THE
SBU’s IN GOOD MARKET POSITIONS
EXCEPT “E”, WHICH THEY CAN EASILY
DIVEST WITHOUT INCURRING LOSSES.

11. ANS. LIMITATIONS:-
1. THE PRODUCT LIFE TIME OR THE LIFE TIME
OF DIFFERENT STAGES viz. introduction,
growth, maturity & decline ARE NOT
KNOWN.

12. 2. High Market shares does not means that the
sbu is profitable.
3. Low Market shares does not means that the
sbu is not profitable.
4. The frame work assumes that each SBU is
independent of the others. In some cases a
SBU i.e. in DOG may be helping other SBU’s
gaining a competitive advantage.
5. The matrix depend heavily on the breadth of
market definition. A SBU may dominate its
small niche but have very low market share in
the overall industry.
6. No clear definition of what constitutes a
market.