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A Study Of The BCG Matrix

For VIDEOCON
VAIS ARTI SHANTILAL
M.COM B!F" #ART$%
Executive Summary
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The BCG matrix or a&'o (a&&ed BCG model re&ate' to )ar*eti+,. The BCG
)ode& i' a -e&&$*+o-+ .ortfo&io )a+a,e)e+t too& u'ed i+ .rodu(t &ife (y(&e
theory. BCG )atrix i' ofte+ u'ed to .rioriti/e -hi(h .rodu(t' -ithi+ (o).a+y
.rodu(t )ix ,et )ore fu+di+, a+d atte+tio+.
The BCG matrix )ode& i' a portfolio planning )ode& de0e&o.ed 1y Bru(e
He+der'o+ of the Bo'to+ Co+'u&ti+, Grou. i+ the ear&y %2345'.
The BCG )ode& i' 1a'ed o+ (&a''ifi(atio+ of .rodu(t' a+d i).&i(it&y a&'o
(o).a+y 1u'i+e'' u+it'" i+to four (ate,orie' 1a'ed o+ (o)1i+atio+' of market
growth a+d market share re&ati0e to the &ar,e't (o).etitor. Thi' .ro6e(t i' a1out
Study of BCG Matrix of Videocon Industrial Ltd.
Videocon Industries Limited BSE7 8%%9:2; NSE7 VIDEOIND" i' a &ar,e
di0er'ified I+dia+ (o).a+y head<uartered i+ Gur,ao+; Harya+a. The ,rou. ha'
%3 )a+ufa(turi+, 'ite' i+ I+dia a+d .&a+t' i+ Mai+&a+d Chi+a; #o&a+d; Ita&y a+d
Mexi(o. It (&ai)' to 1e the third &ar,e't .i(ture tu1e )a+ufa(turer i+ the -or&d.
The ,rou. i' a =S>8 1i&&io+ ,&o1a& (o+,&o)erate.
The Video(o+ ,rou.5' (ore area' of 1u'i+e'' are (o+'u)er e&e(tro+i(' a+d
ho)e a..&ia+(e'. They ha0e re(e+t&y di0er'ified i+to area' 'u(h a' DTH;
.o-er; oi& ex.&oratio+ a+d te&e(o))u+i(atio+. I+ I+dia; the ,rou. 'e&&'
(o+'u)er .rodu(t' &i*e (o&our te&e0i'io+'; -a'hi+, )a(hi+e'; air
(o+ditio+er'; refri,erator'; )i(ro-a0e o0e+' a+d )a+y other ho)e
a..&ia+(e'; throu,h a )u&ti$1ra+d 'trate,y -ith the &ar,e't 'a&e' a+d 'er0i(e
+et-or* i+ I+dia.
OBJECTIVES
The o16e(ti0e' of thi' 'tudy are fo&&o-i+,7$
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%. To a+a&y'e the .rodu(t .ortfo&io of Video(o+ Co).a+y -ith re'.e(t to
BCG )atrix.
?. To a+a&y'e the 1ra+d' 'o .&a(ed a+d (riti(a&&y (o).are their .&a(e)e+t.
9. To (o).are the out(o)e' 'o o1tai+ed a+d ,e+erate 'u,,e'tio+'
P!POSE
The .ur.o'e of the 'tudy i' to a+a&y'e the .rodu(t .ortfo&io of Video(o+
Co).a+y -ith re'.e(t to BCG )atrix; to a+a&y'e the 1ra+d' 'o .&a(ed
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a+d (riti(a&&y (o).are their .&a(e)e+t; to (o).are the out(o)e' 'o
o1tai+ed a+d ,e+erate 'u,,e'tio+'.
!ESE"!C# MET#O$OLOG%
The re'ear(h -i&& 1e 1a'ed u.o+ the 'e(o+dary 'our(e' of data a' the .ur0ie- of
the re'ear(h i' re'tri(ted to a..&i(atio+ of the BCG (o+(e.t o+to Video(o+
Co).a+y. The (o).a+y i' +ot i+0o&0ed i+ re'ear(h )ethodo&o,y a+y -ay.
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I+ order to a(hie0e the fir't o16e(ti0e 'e(o+dary 'our(e' of data -i&& 1e referred
i.e. 1oo*'; i+ter+et; )a,a/i+e'; arti(&e'; -e1'ite'; et(.
To fu&fi& the &a't t-o o16e(ti0e'; the he&. of hard fa(t' a+d 'tati'ti(a& data -i&& 1e
ta*e+; for 'u(h data (o&&e(tio+ 0ariou' )ar*et 'ur0ey' -i&& 1e he&.fu&. The data
-i&& 1e a+a&y'ed a+d 0a&ua1&e i+.ut' -i&& 1e ,i0e+ i+ for) of 'u,,e'ted
'trate,ie'.
C#"PTE! &'( BCG M"T!I)
Thi' fra)e-or* a..&ie' t-o i+.ut'; )ar*et ,ro-th a+d )ar*et 'hare to a
.ortfo&io of 'e,)e+t'; .rodu(t' or 1u'i+e''e'; a+d the+ dra-' (o+(&u'io+' a1out
ho- re'our(e' e.,. ta&e+t; i+0e't)e+t" 'hou&d 1e a&&o(ated a(ro'' the .ortfo&io.
Star' hi,h ,ro-th a+d )ar*et 'hare" are the fir't .riority for re'our(e'. Ca'h
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(o-' are a&'o attra(ti0e 1u'i+e''e'; 1ut do +ot +eed a' )u(h i+0e't)e+t. The
harde't (hoi(e' are i+ the A#ro1&e) Chi&dA 'e,)e+t; -here the )ar*et i'
attra(ti0e; 1ut the (o).a+y i' -ea* re&ati0e to (o).etitio+. The'e are Adou1&e$
or$<uitA 1u'i+e''e'. Bu'i+e''e' i+ the AExitA 'e,)e+t 'hou&d 1e the &o-e't
.riority for '(ar(e re'our(e'.
The )atrix -a' i+0e+ted 1y Bo'to+ Co+'u&ti+, Grou. BCG" i+ the %234' to
he&. or,a+i/atio+' -ith their .ortfo&io 'trate,y.
*+en to use t+is frame,or-'
='e thi' )atrix -he+ you ha0e to )a*e de(i'io+' o+ re'our(e a&&o(atio+ a(ro''
a .ortfo&io. It i' 0er'ati&e; a1&e to 1e u'ed for a .ortfo&io of 1u'i+e'' u+it';
.rodu(t' or )ar*et 'e,)e+t'. ItB' (&arity a+d ea'e of u+der'ta+di+, )a*e' it a
.o-erfu& (o))u+i(atio+ too& to ex.&ai+ diffi(u&t re'our(e a&&o(atio+ de(i'io+'
to the or,a+i/atio+ C'ee da+,er'D.
$ra,in. insi.+ts7
a" I+di0idua& 1u'i+e'' u+it' $ Che(* that the 'trate,i( o16e(ti0e of a 1u'i+e''
)at(he' it' <uadra+t7
EStar'F 'hou&d re(ei0e the 1e't .eo.&e; a+d fir't .riority for di'(retio+ary
i+0e't)e+t'. Criti(a& to the future of the 1u'i+e''; they )u't 1e defe+ded
at a&& (o't'. Gat(h out for a+y &o'' of Re&ati0e Mar*et Share.
ECa'h (o-'F ,e+erate the fu+d' re<uired to i+0e't i+ the hi,her ,ro-th
.art' of the .ortfo&io. E+'ure e+ou,h i+0e't)e+t to 'u'tai+ their
&eader'hi. .o'itio+ $ do+5t )i&* the) dryH
For ea(h of the E#ro1&e) Chi&dre+F a 1i+ary de(i'io+ )u't 1e ta*e+.
Se&e(ted 1et' -i&& 1e )ade -ith hea0y i+0e't)e+t to ,ro- )ar*et 'hare
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a+d )a*e the) the Star' of the future. Be(au'e they are (o)i+, fro)
1ehi+d; they -i&& +ot de&i0er the 'hort ter) retur+' of the 'tar'. Therefore
the 1u'i+e'' )u't )a*e the'e 1et' 0ery 'e&e(ti0e&y -here they ,e+ui+e&y
1e&ie0e they (a+ a(hie0e a &eader'hi. .o'itio+; a+d )a*e the tou,h
de(i'io+ to i,+ore other hi,h ,ro-th o..ortu+itie'.
EExitF <uadra+t. Fre<ue+t&y it -i&& +ot )a*e 'e+'e to di0e't or exit
1u'i+e''e' ra.id&y i+ thi' <uadra+t. Rather they -i&& 1e 'et u. to o.erate
-ith )i+i)a& re'our(e drai+ o+ the re't of the .ortfo&io; a' the 1e't .eo.&e
a+d a&& di'(retio+ary re'our(e' are di0erted to )ore attra(ti0e 1u'i+e''e'.
O0er ti)e they -i&& 1e(o)e a di)i+i'hi+, .ortio+ of the .ortfo&io.
1" O0era&& .ortfo&io hea&th. The 'e(o+d de(i'io+ that (a+ 1e dri0e+ fro) thi'
a+a&y'i' i' ADo -e +eed to re1a&a+(e our .ortfo&ioJA Do -e ha0e e+ou,h Star'J
Do -e ha0e too )u(h Edead-oodF i+ the Exit <uadra+tJ Are -e )a*i+, too
)a+y &o+, ter) 1et' o+ #ro1&e) Chi&dre+J Shou&d -e di0e't 'o)e of our Ca'h
Co-' a+d i+0e't the .ro(eed' i+ hi,her ,ro-th 1u'i+e''e'J
Limitations'
The .ri)ary da+,er i' that thi' fra)e-or* i' too 'i).&i'ti( a+d E+eatF;
deter)i+i+, )a6or 'trate,i( de(i'io+' -ithout (o+'ideri+, other fa(tor'. For
exa).&e; -he+ a &o- ,ro-th; hi,h 'hare 1u'i+e'' fo&&o-' a E(a'h (o-F
a..roa(h it )ay 1e(o)e a 'e&f$fu&fi&&i+, .ro.he(y. La(* of i+0e't)e+t i+
i++o0atio+ )ay 1e exa(t&y -hat i' ho&di+, ,ro-th 1a(*. It i' fre<ue+t&y ea'ier to
,ro- )ar*et 'hare fro) @4K to @8K; tha+ to ,ro- fro) 8K to %4K. ='i+,
a&ter+ati0e axe' e.,. Co).etiti0e #o'itio+" (a+ ad6u't for thi'; 1ut 1ri+,' i+
)ore 'u16e(ti0e 6ud,)e+t.
Thi' fra)e-or* 'hou&d +ot 1e u'ed i+ i'o&atio+ L the de(i'io+' it i+di(ate' (a+
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1e (o+fir)ed 1y other a+a&y'e' L e.,. i+(re)e+ta& retur+' o+ (a.ita&.
nderlyin. assum/tions of t+is frame,or- 7
%. Hi,h )ar*et 'hare dri0e' 'u.erior retur+'
?. I+0e't)e+t i+ hi,her ,ro-th )ar*et' de&i0er' )ore attra(ti0e retur+'
9. Ea(h .art of the .ortfo&io ha' 'i)i&ar re'our(eMretur+ dy+a)i('
@. Re'our(e' (a+ ,e+ui+e&y 1e a&&o(ated a(ro'' the .ortfo&io Cthi' )ay +ot
1e .o''i1&e L e.,. it )ay 1e hard to a&&o(ate ta&e+t a(ro'' 1u'i+e''e'D
8. Re'our(e' are (o+'trai+ed L trade$off' +eed to 1e )ade a(ro'' the
.ortfo&io
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"lternatives
%" A&ter+ati0e axi' for )ar*et 'hare (ou&d 1e Co).etiti0e #o'itio+ L a -ei,hted
(o).o'ite )ea'ure e.,. 1ra+d e<uity; .rofit 'hare" if )ar*et 'hare i' +ot a ,ood
.roxy for (a'h f&o- .ote+tia&. Thi' i+trodu(e' )ore 'u16e(ti0ity.
?" A+ a&ter+ati0e axi' for Mar*et Gro-th (ou&d 1e Mar*et Attra(ti0e+e'' L a
-ei,hted (o).o'ite )ea'ure e.,. 1u'i+e''M.rodu(tM'e,)e+t .rofita1i&ity" if
,ro-th rate a&o+e i' .oor&y re&ated to &o+, ter) 0a&ue .ote+tia&. Ney to +ote i'
that thi' axi' i' i+de.e+de+t of (o).a+y L a&& (o).etitor' -ou&d rate thi' axi'
the 'a)e.
9" I+(&ude (urre+t )ar*et 'i/e o+ the fra)e-or*; a' a 1u11&e (hart -ith the
)ar*et 'i/e .ro.ortio+a& to the area of the (ir(&e". Mar*et 'i/e )a*e' +o
differe+(e to the ri,ht 'trate,i( o16e(ti0e of the i+di0idua& e&e)e+t' of the
.ortfo&io; 1ut i+(&udi+, it (a+ .ro0ided a+ i))ediate 0i'ua& .i(ture of the
o0era&& 'trate,i( hea&th of the .ortfo&io.
@" ='e hi'tori( ,ro-th rate'; +ot ex.e(ted future &o+, ter) ex.e(ted ,ro-th
rate'. Thi' re)o0e' )ore 6ud,)e+t fro) the )atrix .o'itio+; at the ex.e+'e of
re&e0a+(e.
C#"PTE! 0 ' I1T!O$CTIO1 TO VI$EOCO1
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Videocon i' a+ i+du'tria& (o+,&o)erate -ith i+tere't' a&& o0er the -or&d a+d
1a'ed i+ I+dia. The ,rou. ha' %3 )a+ufa(turi+, 'ite' i+ I+dia a+d .&a+t'
i+ Chi+a; #o&a+d; Ita&y a+d Mexi(o. It i' a&'o the third &ar,e't .i(ture
tu1e )a+ufa(turer i+ the -or&d.
The Video(o+ ,rou. ha' a+ a++ua& tur+o0er of =S> 8 1i&&io+; )a*i+, it o+e of
the &ar,e't (o+'u)er e&e(tro+i( a+d ho)e a..&ia+(e (o).a+ie' i+ I+dia. Si+(e
%22:; it ha' ex.a+ded it' o.eratio+' ,&o1a&&y; e'.e(ia&&y i+ the Midd&e Ea't.
Today t+e .rou/ o/erates t+rou.+ five -ey sectors'
Consumer electronics
I+ I+dia the ,rou. 'e&&' (o+'u)er .rodu(t' &i*e Co&our Te&e0i'io+'; Ga'hi+,
Ma(hi+e'; Air Co+ditio+er'; Refri,erator'; Mi(ro-a0e o0e+' a+d )a+y other
ho)e a..&ia+(e'; 'e&&i+, the) throu,h a Mu&ti$Bra+d 'trate,y -ith the &ar,e't
'a&e' a+d 'er0i(e +et-or* i+ I+dia. Video(o+ Grou. 1ra+d' i+(&ude Ne+'tar;
Next et(.
Mo2ile P+ones
I+ No0e)1er ?442 Video(o+ &au+(hed it' +e- &i+e of )o1i&e .ho+e'
$T#
I+ ?442; Video(o+ &au+(hed it' DTH .rodu(t; (a&&ed 5d?h5. A' a .io+eeri+, offer
i+ the I+dia+ DTH )ar*et; Video(o+ offered LCD TV' -ith 1ui&t$
i+ DTH 'ate&&ite re(ei0er -ith 'i/e' %2A a+d 9?A.Thi' (o+(e.t i+ the DTH
'er0i(e i' re&ati0e&y +e- i+ the .re'e+(e of other .&ayer' &i*e OEE TVB' Di'h
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TV; Tata S*y; Airte& Di,ita& TV a+d Re&ia+(e5' BIG TV .ro0idi+, o+&y the 'et
to. 1ox.
Telecommunication
Video(o+ ha' 'u1'idiary +a)ed Data(o) So&utio+' #0t Ltd -hi(h ha' &i(e+'e
for Mo1i&e Ser0i(e o.eratio+' a(ro'' I+dia. It i' (o))er(ia& &au+(h o+ 3th
)ar(h ?4%4 i+ Mu)1ai.
Com/any Bac-.round
Ty/e
#u1&i( Co).a+y
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Traded as
BSE7 89?%?2
NSE7 VIDEOIND
Industry
Co+,&o)erate
3ounded
%232
3ounders
Ve+u,o.a& Dhoot
#ead4uarters
Gur,ao+; I+dia
5ey /eo/le
Ve+u,o.a& Dhoot
Products
Co+'u)er E&e(tro+i('
Ho)e A..&ia+(e'
Co).o+e+t'
Offi(e Auto)atio+
Mo1i&e .ho+e'
Gire&e''
I+ter+et
#etro&eu)
Sate&&ite te&e0i'io+
#o-er
!evenue
%:%83?.3 )i&&io+=S>9.4 1i&&io+"?4%?L%9"
C?D
Profit
$3%I.9 )i&&io+ =S>P%? )i&&io+"?4%?L%9"
C?D
Em/loyees
2;444 ?4%?"
*e2site
---.0ideo(o+.(o)
0ideo(o+-or&d.(o)
VI$EOCO1 P!O$CTS
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VI$EOCO1 LC$ TV
Tou(h the true e''e+(e of )u&ti)edia e+tertai+)e+t -ith Video(o+ LCD
TV ! ex.erie+(e t0 a' you50e +e0er 'ee+ it 1efore.
VI$EOCO1 !efri.erators
Ex.erie+(e the +e- re0o&utio+ i+ fre'h+e'' -ith E(o Fre'h refri,erator'.
VI$EOCO1 "ir Conditioners
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I+te&&i,e+t te(h+o&o,y; I+te&&i,e+t de'i,+; I+te&&i,e+t ra+,e. VIDEOCON
Air Co+ditio+er'.
VI$EOCO1 *as+in. Mac+ine
The .o-er of Qua+ta Ga'h -ith the ed,e of = V Ray te(h+o&o,y.
ST!"TEGIC BSI1ESS 1IT
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A+ SB=; i+ the 'trate,i( )a+a,e)e+t 'e+'e; i' +or)a&&y a+ e+tire di0i'io+ i+
&ar,e (or.oratio+' or o+e of the fir)' of a di0er'ified (o).a+y that (arrie' out a
(ertai+ 1u'i+e'' $ i+ o+e of the 1u'i+e'' 'e(tor' the fir) o.erate'. Thi' a..roa(h
e+tai&' the (reatio+ of SB=5' to addre'' ea(h )ar*et i+ -hi(h the (o).a+y i'
o.erati+,.

SB O3 VI$EOCO1 COMP"1%
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5E% STEPS TO*"!$S ST!"TEGIC PL"11I1G
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MISSIO1
To de&i,ht ! de&i0er i++o0ati0e .rodu(t throu,h i+,e+iou' 'trate,y i+tre.id
e+tre.re+eur'hi.; i).ro0ed te(h+o&o,y; i+'i,htfu& )ar*eti+, a+d i+'.ired
thi+*i+, a1out the future.
VISIO1
To 1ri+, ha..i+e'' i+ e0ery ho)e -ith ,&o1a& .re'e+(e offeri+, hi,h <ua&ity
EeF$ .rodu(t' to ea'e ! e+ri(h hu)a+ &ife
GO"L
ETo .ro0ide a )u(h hi,her &e0e& of 'er0i(e to a&& tho'e -ho 'ee* i+for)atio+F
C#"PTE! '6 BCG M"T!I) O3 VI$EOCO1 COMP"1% I1
COMP"!ISO1 TO OT#E! ELECT!O1IC COM"P1IES
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BCG M"T!I) O3 VI$EOCO1 COMP"1% "CCO!$I1G
TO ITS P!O$CTS
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P!O$CT LI3E C%CLE O3 VI$EOCO1
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VI$EOCO1 LC$ "T I1T!O$CTIO1 ST"GE
VI$EOCO1 "PPLI"1CES IS "T ST"! ST"GE
VI$EOCO1 MOBILE P#O1ES 7 TELECOMM1IC"TIO1
SE!VICES IS "T C"S# CO* ST"GE
VI$EOCO1 OIL 7 G"S $IVISIO1 IS "T $OGS ST"GE
C#"PTE! 8 ' !EVIE* O3 LITE!"T!E
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"!TICLE &'( VI$EOCO1 L"1C#ES 1I1E MOBILE #"1$SETS9
E%ES & M1 S"LE MO1T#L%
"ut+or' ( S. *aither
Pu2lis+er' ( Ti)e' Of I+dia
%ear' ( ?4%4
I+ thi' arti(&e it ha' di'(u''ed that Video(o+ today &au+(hed +i+e )o1i&e
ha+d'et' a+d it .&a+' to 'e&& a )i&&io+ de0i(e' .er )o+th i+ the (ou+try 'a)e
year. Video(o+ ha' 1ee+ 'o far 'e&&i+, ?.8$9 &a*h u+it' a )o+th. Gith the +i+e
&au+(he'; it' offeri+, ha' ri'e+ to a tota& of ?% ha+d'et' fro) %? at .re'e+t. Thu'
the (o).a+y .&a+ to 'e&& o+e )i&&io+ u+it' e0ery )o+th a' .er the (u'to)er
a..roa(ha1&e .ri(e. At .re'e+t; ,&o1a& 1ra+d' &i*e No*ia; Sa)'u+,; LG; a+d
So+y Eri(''o+ to,ether -ith I+dia+ .&ayer' &i*e Mi(ro)ax ha0e o0er 24 .er
(e+t )ar*et 'hare. Mo1i&e .ho+e )ar*et ha' 1ee+ o+e of the fa'te't ,ro-i+,
)ar*et'. Ho-e0er; there i' a 1i, ,a. 1et-ee+ the i+ter+atio+a& 1ra+d' a+d
do)e'ti( o+e'. Video(o+ ai)ed to 1rid,e the ,a..
"!TICLE 0'( VI$EOCO1 PL"1S :;;M* PO*E! PL"1T I1
M"#"!"S#T!"
"ut+or' ( A)ritha #i&&ay
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Pu2lis+er' (Bu'i+e'' Today
%ear' ( ?4%4
The Video(o+ Grou. i' .&a++i+, to 'tart a 844MG .o-er .&a+t i+ it' ho)e&a+d
a+d i' &oo*i+, for 'uita1&e &a+d a' -e&& a' a (oa&$tra+'.ortatio+ 'o&utio+ i+
Mahara'htra. It a&'o ex.e(t' to a(hie0e fi+a+(ia& (&o'ure for it' Gu6arat$1a'ed
%;?44MG .o-er .&a+t 1y e+d$Mar(h. The fi+a+(ia& (&o'ure for the fir't .ha'e
of I44MG ha' 1ee+ a(hie0edR the 'e(o+d .ha'eB' fi+a+(ia& (&o'ure i' ,etti+,
(o).&eted. After fi+a+(ia& (&o'ure; .o-er .ro6e(t' ta*e a+other three a+d a ha&f
year' to 1e (o))i''io+ed.
C#"PTE! : ' CO1CLSIO1
Videocon i' a+ i+du'tria& (o+,&o)erate -ith i+tere't' a&& o0er the -or&d a+d
1a'ed i+ I+dia. The ,rou. ha' %3 )a+ufa(turi+, 'ite' i+ I+dia a+d .&a+t'
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i+ Chi+a; #o&a+d; Ita&y a+d Mexi(o. It i' a&'o the third &ar,e't .i(ture
tu1e )a+ufa(turer i+ the -or&d.
Today the ,rou. o.erate' throu,h fi0e *ey 'e(tor'7
Co+'u)er e&e(tro+i('
Mo1i&e #ho+e'
DTH
Te&e(o))u+i(atio+
I+ BCG Matrix .rodu(t or 1u'i+e'' u+it are ide+tified a' Star'; Ca'h Co-;
Do,'; Que'tio+ )ar*. BCG Matrix (a+ u'e for re'our(e a&&o(atio+.
STARS hi,h ,ro-th; hi,h )ar*et 'hare"
CASH COGS &o- ,ro-th; hi,h )ar*et 'hare"
DOGS &o- ,ro-th; &o- )ar*et 'hare"
Q=ESTION MARNS hi,h ,ro-th; &o- )ar*et 'hare"
BCG M"T!I) Of Videocon accordin. to its /roducts'
VIDEOCON LCD at I+trodu(tio+ 'ta,e.
VIDEOCON A##LIANCES at Star 'ta,e.
[Type text] Page ?9
VIDEOCON MOBILE #HONES ! TELECOMM=NICATION
SERVICES at Ca'h Co- 'ta,e.
VIDEOCON OIL ! GAS DIVISION at Do,' 'ta,e.
[Type text] Page ?@

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