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Boston Matrix Portfolio

Introduction

2.2 Analysis of the main economic indicators of the enterprise "Empire Sumok" LLC

2.3 Conducting a strategic analysis of the brands of Empire Bags LLC using the matrix method of the Boston Advisory Group

Conclusion

Introduction

The effectiveness of the activities of organizations, companies, holdings, the national economy as a whole largely depends on the study of the management systems being created, their rational construction and the necessary investments. The need for investment in the creation of modern control systems is always great, and the available investment resources are always limited. In this regard, in practice, the management of organizations is always faced with the task of choosing the most effective option for implementing investments in management systems.

Currently, there are many methods for studying control systems.

Developing, analyzing and managing a portfolio strategy is a lengthy process that requires a thorough understanding of market trends and the company's internal processes. Portfolio analysis examines product competitiveness, product strengths and weaknesses, market dynamics, changes in consumer behavior, and a variety of other factors that affect the long-term attractiveness of an industry.

Portfolio strategies allow the most efficient way to allocate the company's limited resources to support and develop a diverse range of products.

In global practice, the following assortment analysis models are used to approve a portfolio strategy: the Boston Advisory Group matrix and the GE / McKinsey matrix.

The BCG matrix helps answer the question "Investments in the development of which goods and services will be the most profitable?" and develop long-term strategies for the development of each unit of the range.

The GE / McKinsey matrix helps to choose the most stable product segment for business, taking into account the competitiveness of the company's product and the potential of the target market.

In this paper, the matrix method of the Boston Advisory Group will be considered.

The relevance of applying the matrix method of the Boston Advisory Group lies in the fact that this method will allow you to find ways to solve the problem that has arisen and develop a strategy to improve the company's activities.

To ensure an optimal and stable level of income generation, the company's management needs to periodically conduct a strategic analysis of the company's product portfolio.

At the present stage of the market economy and with the rapid emergence and development of new markets, the level of competition increases, which, in turn, makes the company's management think about its position in the market. The consumer also keeps up with the times and quickly masters the innovations that have appeared in a particular area. And in this regard, a developing company needs to look for new ways of development, invest free funds in the creation of new products and services in order to maintain or improve its position in the market.

The purpose of this work is to study the theoretical aspects of the matrix method of the Boston Advisory Group in the IMS, analyze the activities and develop recommendations for improving the assortment portfolio of the company Bag Empire LLC.

Based on the goal, the following tasks were performed:

Studying the theoretical aspects of the matrix method

Boston Advisory Group at ISU

Conducting an analysis of the main economic indicators of the activity of the company "Empire Bags" LLC, as well as a strategic analysis of the brands of "Empire Bags" LLC was carried out using the matrix method of the Boston Advisory Group.

The objects of this study is LLC "Empire Bags".

The subject of the study is the matrix method of the Boston Advisory Group in ISU.

The information base of the study includes publications of domestic authors and the results of calculations in the course of the study.

Chapter 1. Theoretical Aspects of the Matrix Method of the Boston Advisory Group in ISU

1.1 The essence and main indicators of the BCG matrix

Currently, one of the widely used tools for evaluating the economic activity of an organization is portfolio analysis.

An enterprise portfolio is a set of relatively independent business units (strategic business units) owned by one owner.

Portfolio analysis is a tool with which the company's management examines and evaluates its business activities in order to invest in the most profitable or promising areas and reduce / terminate investments in inefficient projects.

At the same time, the relative attractiveness of the markets and the competitiveness of the enterprise in each of these markets are assessed. The company's portfolio is supposed to be balanced, i.e., it should be the right combination of units or products that need capital for growth, with business units that have some excess capital.

The purpose of portfolio analysis techniques is to help managers create a clear picture of how costs and benefits are generated in a diversified company. Portfolio analysis provides managers with a tool to analyze and plan portfolio strategies to determine prudent diversification in a diversified firm.

One of the most important ways to use the results of portfolio analysis is to make decisions about the restructuring of the company in order to use the opportunities that are opening up both inside the company and outside it.

Portfolio analysis is designed to solve the following problems:

Coordination of business strategies, or strategies of business units of the enterprise. It is designed to strike a balance between business units with quick returns and directions that prepare the future;

Distribution of human and financial resources between business units;

Portfolio balance analysis;

Establishment of executive tasks;

Carrying out restructuring of the enterprise (merger, acquisition, liquidation and other actions to change the management structure of the enterprise, expand or reduce the business).

One of the tools of the method of conducting strategic analysis and planning in marketing is the BCG matrix. The BCG matrix was created by the founder of the Boston Consulting Group (Boston Consulting Group - a leading international company specializing in management consulting) Bruce D. Hendersen to analyze the relevance of the company's products, based on their position in the market relative to the growth of the market for these products and the share occupied by the company selected for analysis On the market. The BCG matrix (also called the growth-market share matrix) was developed in the late 1960s and is one of the first models of portfolio analysis.

The BCG matrix is ​​based on two hypotheses: the leading company in the segment has a competitive advantage in production costs, and hence the highest level of profitability in the market; in order to function effectively in fast-growing segments, the company must invest in product development at a high level; conversely, presence in a market with low growth rates allows you to reduce the cost of product development.

The BCG Matrix suggests that, in order to achieve productive, profitable long-term growth, a company must generate and extract cash from successful businesses in mature markets and invest it in rapidly growing attractive new segments, strengthening the position of its products and services in them to generate a sustainable level of income in the future.

Rice. 1. BCG table example

Thus, the main task of the BKG model is to determine priorities in the development of the company's assortment units, to identify key areas for future investments. The method helps to answer the question "Investments in the development of which goods and services will be the most profitable?" and develop long-term strategies for the development of each unit of the range.

The following products can be analyzed in the BCG model:

Separate lines of business of the company that are not related to each other.

separate groups of goods sold by the enterprise in one market.

separate units of goods and services within one group of goods.

The construction of the BCG matrix begins with the calculation of three indicators for each product group included in the model: the relative market share of the company's product, the market growth rate, and the volume of sales / profits of the analyzed product groups.

The calculation of the relative market share is calculated by dividing the absolute market share of the company's product in the analyzed segment by the market share of the leading competitor in the analyzed segment. The relative market share is plotted along the horizontal axis of the matrix and is an indicator of the competitiveness of the company's product in the industry.

If the value of the relative market share of the company's product is greater than one, then the company's product has a strong position in the market and has a high relative market share. If the value of the relative market share is less than one, then the company's product has a weaker position in the market compared to the leading competitor and its relative share is considered low.

The calculation of market growth rates is plotted along the vertical axis of the BCG matrix and is an indicator of the maturity, saturation and attractiveness of the market in which the company sells its goods or services. It is calculated as a weighted average among all market segments in which the company operates.

If the market growth rate is more than 10%, the market is fast growing or a market with a high growth rate. If the market growth rate is less than 10% - the market is slowly growing or a market with a low growth rate.

The volume of sales is shown in the matrix through the size of the circle. The larger the size, the higher the sales volume. The information is collected on the basis of the available internal statistics of the company and visualizes in which markets the main funds of the company are concentrated (Fig. 2).

Rice. 2. An example of filling in the BCG matrix of an enterprise

1.2 Interpretation and analysis of the BCG matrix

As a result of building the BCG matrix, all product groups or individual products of the company are divided into 4 quadrants. The product group development strategy depends on the quadrant in which the product is located. Each quadrant has separate recommendations (Figure 3):

Rice. 3. Description of the four quadrants of the BCG matrix

First quadrant: "question marks" or "difficult children"

In the first quadrant of the BCG matrix are those lines of business of the company that are represented in fast-growing industries or segments, but have a low market share or, in other words, occupy a weak position in the market. These activities require a high level of investment in order to grow in line with the market and strengthen the position of the product in the market.

When a business line falls into this quadrant of the BCG matrix, the enterprise must decide whether there are now sufficient resources for the development of goods in this market (in this case: investments are directed to the development of knowledge and key advantages of the product, to an intensive increase in market share). If a company does not have sufficient resources to develop a product in these markets, the product does not develop.

Second quadrant: "stars"

In the second quadrant of the BCG matrix are the lines of business of the company that are leaders in their rapidly growing industry. The company must support and strengthen this type of business, and therefore not reduce, and possibly increase investment.

Some of the company's best resources (staff, R&D, cash) should be allocated to these lines of business. This type of business is a future stable supplier of funds for the company.

Third quadrant: "cash cows"

Represents lines of business with a high relative market share in slow-growing or even stagnant markets. The goods and services of the company presented in this quadrant of the BCG matrix are the main generators of profits and cash.

These products do not require high investments, only to maintain the current level of sales. The company can use the cash flow from the sale of such goods and services to develop its more promising lines of business - "stars" or "question marks".

Fourth quadrant: "dogs"

This quadrant of the BCG matrix concentrates lines of business with a low relative market share in slow-growing or stagnating markets. These lines of business usually bring little profit and are unpromising for the company. Strategy for working with these goods: reduction of all investments, possible closure of the business or its sale.

1.3 Formation of an ideal portfolio according to the BCG model and development of strategic decisions in the analysis of the matrix

An ideal portfolio should consist of 2 product groups:

goods that can provide the company with free cash resources for the possibility of investing in business development (stars and cash cows).

goods that are at the stage of introduction to the market and at the stage of growth, in need of investment and capable of ensuring the future stability and stability of the company (question marks).

In other words, the goods of the first group ensure the current existence of the company, the goods of the second group provide the future income of the company.

Decisions to be made in the analysis:

1. For each product in the BCG matrix, a development strategy must be adopted. The right strategy helps to determine the position of the goods within the matrix:

for "stars" - maintaining leadership

for "dogs" - exit from the market or decrease in activity

for "question marks" -- investment or selective development

for "cash cows" - maximizing profits

2. Goods that fall into the "dogs" group should be excluded from the portfolio as soon as possible. This group is dragging the company down, depriving free cash, eating up resources. An alternative to exclusion from the portfolio may be to update and reposition the product.

3. With a lack of current free funds, programs should be developed to increase the number of "cash cows" or "stars" in the long term, and in the short term, the release of new products should be reduced (since the company is not able to maintain the development of all new products at the required level)

4. With a lack of future funds, it is necessary to introduce more new products into the portfolio that can become "stars" or "cash cows" in the future.

Ideally, a balanced nomenclature portfolio of an enterprise should include 2-3 products - "Cows", 1-2 - "Stars", several "Difficult Children" as a reserve for the future and, possibly, a small number of products - "Dogs". An excess of aging goods ("Dogs") indicates the danger of a downturn, even if the current performance of the enterprise is relatively good. An excess of new products can lead to financial hardship.

· T The growth rate of the market cannot speak about the attractiveness of the industry as a whole. There are many factors affecting the attractiveness of the segment - entry barriers, macro and micro economic factors. The growth rate of the market does not say how long the trend will be.

Chapter 2. Practical aspects of the matrix method of the Boston Advisory Group in MIS

2.1 Characteristics of the company LLC "Empire Bags"

The all-Russian chain of stores "Imperia Bags" is the largest retail chain of large specialized stores in Russia, which sells bags. The network is part of the JULY group of companies. Since 1994, "July" has been trading in bags and manufacturing them. The Group owns three own productions in Russia (in St. Petersburg, Samara and Voronezh). They produce a wide range of goods under the trademarks "Mr.Bag", "Navigator", "Passo Avanti". At the same time, the network works with the best Russian and foreign manufacturers.

The company operates in 86 cities of Russia. The network consists of 230 stores. The network of stores was built on a franchising system. Each franchise owner has the right to use the trademark "Empire Bags", special conditions for the supply of goods, exclusive rights to a certain territory (city, region, region). There are five stores operating in Ufa (shop addresses: 113, Oktyabrya Ave.; 2 "O" KEY Hypermarket, 37 Marshal Zhukov St.; 3 "Jun" SEC, 112 Komsomolskaya St.; TC "Central" Tsyurupy St. , 97; 5 avenue of October, 11).

The assortment of the network includes women's, men's, children's, travel, sports, youth bags, children's and youth backpacks, business bags, folders, cases and briefcases, bags on wheels, suitcases, trolleys, bags for video cameras, beach and shopping bags, wallets and waist bags, schoolbags and satchels. The nomenclature consists of more than 10,000 items.

The company sells the following brands: Francesco Molinary, Poshete, Marzia, Grott, Ecotope, Rain Berry, Mr.Bag, Navigator, Passo Avanti, Eminent, Ecotope, Rain Berry, Bolinni, David Jones, Gianni Conti, Giorgio Ferretti, Sergio Belotti, Tri elephant, Unicorn, Valentino Rudy, Wanlima, Askent.

The range includes products made from natural leather, leather substitutes, as well as from a wide range of synthetic fabrics. The JULY group itself imports raw materials for its products. All products offered for sale online comply with current quality and safety standards for health.

2.2 Analysis of the main economic indicators of the enterprise "Empire Bags" LLC

Table 1 Main economic indicators of "Empire Sumok" LLC, ths. rub.

Based on the data given in Table 1, it can be seen that 2011 turned out to be a profitable year for the store, since in 2012 and 2013 the store operated at a loss. Net profit also decreased compared to 2011, although revenue in 2013 was higher. This problem is caused by the fact that the store has a growing debt to suppliers. The formation of debt can be explained by a decrease in sales volumes due to inflated prices for leather and imitation leather products and an increase in inflation. To stimulate sales, the company regularly holds promotions to reduce prices up to 30, 40 and 70% for certain brands or individual product groups.

The company should have studied consumer preferences more carefully and taken into account all sorts of wishes regarding the assortment, supported the most popular brands in the company's portfolio.

2.3 Conducting a strategic analysis of the brands of Empire Bags LLC using the matrix method of the Boston Advisory Group

With the help of the considered method, portfolio analysis according to the BKG model, it is possible to optimize the assortment portfolio of the Empire Bags LLC company, which will help increase the store's sales and ensure stable profits in the future.

The studied brands are brands whose products are represented by several product groups. These brands are: Francesco Molinary, Poshete, Marzia, Askent, Passo Avanti.

1. Collection of initial information

It is necessary to collect data on sales and profit analyses. groups into a single table (Table 2):

Table 2 Data on the volume of sales and profits of the studied brands for 01/01/13-07/01/13, thousand rubles.

2. Calculation of the market growth rate

Table 3

According to the data obtained, it can be revealed that for the brands Francesco Molinary, Askent, Passo Avanti the growth rate is low, for the brands Poshete and Passo Avanti it is high.

3. Calculation of the market share of the product

Calculate the relative market share of each brand. In accordance with the obtained data, we determine for each brand what is the relative market share - "low" or "high" (Table 4).

Table 4

The data obtained showed that the brands Francesco Molinary, Poshete, Marzia occupy a low market share, and the Askent, Passo Avanti brands occupy a high market share.

4. Building a BCG matrix by sales volume

Now, knowing the relative market share of the product and the market growth rate, it is possible to determine for each brand in the company's portfolio its place in the BCG matrix. Based on the information obtained, we will build a BCG matrix, reflecting in each cell the brand name, sales volume and total sales volume for the brand (Fig. 4)

Rice. 4. BCG matrix by sales volume

5. Building a BCG matrix by profit

Let's build a similar BCG matrix for profit(Fig. 5.)

Rice. 5. BCG matrix by profit

6. Analysis, conclusions and strategy development

After analyzing the resulting BCG matrices in terms of sales and profits, we can draw conclusions and determine the strategy for the development of the portfolio of Empire Bags LLC.

Portfolio balance: satisfactory. It is necessary to develop new promising areas and strengthen the position of new products - difficult children in the market.

The portfolio of Empire Bags LLC has obvious deviations from the ideal portfolio, since it does not contain such brands whose products are not "stars", which in turn could provide high profits for the company.

Conclusion

Research of control systems is aimed at developing and improving management in accordance with constantly changing external and internal conditions. In the conditions of the dynamism of modern production and social structure, management must be in a state of continuous development, which today cannot be ensured without exploring the ways and possibilities of this development, without choosing alternative directions.

The essence of a portfolio strategy is to answer the following questions: which of the lines of business is profitable in the long term, which product groups should be developed, and which areas should be closed, as they pull the company down. In other words, portfolio strategies are used in marketing to prioritize the management of multiple brands or product groups within a single brand or enterprise.

When developing a corporate portfolio strategy, it is necessary to keep in mind the main goal: to assess the potential of each line of business and determine the vector of assortment development for each line of business.

The methods used to analyze the activities of the enterprise help to identify a problem that prevents the normal functioning of the enterprise.

Based on the presented economic indicators of Empire Bags LLC, it can be seen that 2011 turned out to be a profitable year for the store, since the store operated at a loss in 2012 and 2013. Net profit also decreased compared to 2011, although revenue in 2013 was higher. This problem is caused by the fact that the store has a growing debt to suppliers. The formation of debt can be explained by a decrease in sales volumes due to inflated prices for leather and imitation leather products and an increase in inflation. To stimulate sales, the company regularly holds promotions to reduce prices up to 30, 40 and 70% for certain brands or individual product groups.

The company should have studied consumer preferences more carefully and taken into account all kinds of wishes regarding the range, support the most popular brands in the company's portfolio.

The results of the study showed that in the portfolio of Empire Bags LLC there are no representatives of the most significant quadrant in the BCG matrix - "stars" who would be leaders in sales and bring high income to the company, which would make it possible to allocate investments in the development and production of new products .

In the course of the study, it was revealed that the balance of the portfolio of Empire Bags LLC is satisfactory. It is necessary to develop new promising areas and strengthen the position of new products - difficult children in the market.

The balance of the portfolio in terms of investments is good: the profit from "Passo Avanti" will be able to provide support for "Poshete and Marzia". And the share of "illiquid assortment - Francesco Molinary dogs" in the portfolio is not so great. Priority investment: support for Passo Avanti, development of the Marzia brand, creation of new products. Poshete brand - you must first increase the profitability of production, otherwise the investment is inappropriate. Askent brand - minimal support.

The Francesco Molinary brand needs to be updated or repositioned.

For the Passo Avanti brand, programs should be developed to increase production in the long term, and reduce the release of new products in the short term (as the company is not able to maintain the development of all new products at the required level).

With a lack of future funds, it is necessary to introduce more new products under the Poshete and Marzia brands into the portfolio.

The portfolio of Empire Bags LLC has obvious deviations from the ideal portfolio, since it does not contain such brands whose products are not "stars", which in turn could provide high profits for the company.

The BCG matrix has its limitations and disadvantages, and as such are:

· the growth rate of the market cannot speak about the attractiveness of the industry as a whole. There are many factors affecting the attractiveness of the segment - entry barriers, macro and micro economic factors. The growth rate of the market does not say how long the trend will be.

· The rate of market growth does not indicate the profitability of the industry, since with high growth rates and low entry barriers, intense competition and price competition may arise, which will make the industry not promising for the company.

Relative market share cannot speak about the competitiveness of the product. Relative market share is the result of past efforts and does not guarantee future product leadership.

· The BCG matrix offers the right directions for investing, but does not contain tactical guidelines and restrictions in the implementation of the strategy. Investing in product development without clear competitive advantages can be inefficient.

List of used literature

1. Ignatieva A.V., Maksimtsov M.M. Study of control systems. Proc. allowance for universities. - M.: UNITY-DANA, 2000 - 71s.

2. Mylnik V.V., Titarenko B.P. Study of control systems. Proc. allowance for universities. - E. Academic prospectus, 2003. - 176s.

3. The official website of the store "Empire of Bags" http://ufa.imperiasumok.ru/?c

4. Article "Introduction to the development of portfolio strategies" - http://powerbranding.ru/marketing-strategy/assortiment/

5. "Goals and stages of portfolio analysis" -http://www.std72.ru/dir/management/strategicheskij_management_uchebnoe_posobie_babanova_ju_v/glava_8_portfelnyj_analiz/196-1-0-3368

6. http://ru.wikipedia.org/wiki/Boston_Consulting_Group

7. http://matrix-sales.ru/articles/61-matritsa-bkg - BCG matrix ideal

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Boston Advisory Group (BCG) Matrix

The Boston Consulting Group (BCG) matrix is ​​considered the first successful attempt to apply a strategic approach to the analysis and formation of an enterprise's product and competitive strategy. It was first introduced in the late 1960s by BCG founder Bruce Henderson as a tool for analyzing the market position of a company's products. From the whole variety of factors characterizing it, only two main ones were chosen to build the matrix: sales growth (profitability) of the product and its market share relative to the main competitors. The authors proceeded from the assumption that according to these features it is possible to classify all the products of the enterprise and develop proposals for business strategies based on such an analysis.

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Rice. 6.3. Boston Advisory Group Matrix

Graphically (Fig. 6.3), the BCG matrix is ​​​​four squares built in a two-dimensional coordinate system "sales growth rate" (vertical axis) and "relative market share" (horizontal axis). When constructing it, the growth rates of sales of goods are divided into "high" and "low" by a conditional line at a level, for example, 5 or 10%. In practice, this limit can be set at any level acceptable for analysis and is determined by the enterprise itself. It is not recommended to set it below 5% or below the growth rate of the economy (industry) as a whole. In the original version, such a boundary was drawn at the level of doubling the growth of the country's gross domestic product with its increase by the inflation rate.

Relative share market is the ratio of the market share of products (type of activity) of a given enterprise to the market share occupied by a leading competitor. For example, if product A occupies 10% of the market, and the main competitor 25%, then the relative market share for product A will be 0.4. If the company's sales for product B have the largest market share - 40%, and the main competitor has 20 %, then the relative market share for B will be 2.0. The number of competitors with this methodology for constructing the matrix is ​​not taken into account.

The relative market share is also divided into "high" and "low", with the boundary between them being 1.0. A coefficient of 1.0 shows that the company is close to leadership: its share is close to the share of the strongest competitor. A coefficient above 1 indicates the leading position of the company's product in the industry. From this point of view, the left side of the matrix highlights the leading types of products of the enterprise in the industry, the right side - lagging behind. As it seems to the author, industry average indicators can also be used as such a boundary, which in many cases is more logical, simpler and more understandable.

Depending on the place occupied in the matrix, products (or a product) have different names. Products that account for a significant portion of the booming market are placed in its most favorable upper left zone. Such products have received the figurative name "stars". Products with a significant share of a weakly growing market began to be called "cash cows". If the market share of the product is small, but its sales are growing, then the products are classified as "difficult children" ("calves" or "question marks"). Products that were able to secure only a small share of the market with its weak development are called “dogs”. In the literature on strategic management, one can also find other names for the distinguished types of products, which does not change the methodology for their grouping.

The BCG matrix is ​​compiled for all products manufactured by the enterprise, or, as they say now, for the entire portfolio of its products or services. In this sense, it can be seen as an example of portfolio analysis. For its compilation for each product should have the following information:

The volume of sales in value terms, it is presented on the matrix of the area of ​​the circle;

Product market share relative to the largest competitor, which determines the horizontal position of the circle in the matrix;

The growth rate of the market in which the enterprise operates with its products determines the vertical position of the circle in the matrix.

On the basis of BCG matrices covering various periods of time, it is possible to build a kind of dynamic series that will give a visual representation of the patterns, directions and rates of promotion on the market of each product. Matrix analysis makes it possible to determine which products or services of an enterprise occupy leading positions compared to competitors, which ones are lagging behind, as well as to preliminarily assess the feasibility and direction of the distribution of strategic resources between them. According to this form of presentation of the results of studying the position of the company's products on the market, we can say that this is a relatively simple, visual and ingenious tool for strategic analysis. It is clear enough that such results can be presented in another form: in the form of analytical tables, time series, etc., and business leaders usually know both the sales volumes of their products and their profitability, as well as their closest competitors. New in the BCG matrix was the linking of these indicators with the position of products on the market and its original division, as well as the form of presentation of the results of the analysis.

The construction and subsequent interpretation of the BCG matrix data are based on the following prerequisites:

· Increasing market share (hence increasing production and sales) reduces unit costs and increases profits as a result of the relative economies of scale.

Gross profit and total income of the enterprise increase in proportion to the growth of the market share of the enterprise;

The need for additional funds with the support of the achieved market share by the enterprise grows in proportion to the growth rate of the market;

Since the growth of the market for each product eventually decreases as it approaches the maturity stage of the life cycle, in order not to lose its overall position in the market, the profit received by the enterprise should be directed to the production of products that have growth trends.

Below are the main classification characteristics of product types in the relevant strategic areas of the BCG matrix, depending on their profitability and market share, with possible enterprise strategies in relation to them:

"Stars"- products that occupy a leading position in a rapidly developing industry. They generate significant profits, but at the same time require significant amounts of resources to finance continued growth, as well as tight management control over these resources. It is strategically important to protect and strengthen them in order to sustain rapid growth.

"Milch cow"- products that occupy a leading position in a relatively stable or declining industry. Since sales are relatively stable at no additional cost, this product generates more profit than is required to maintain its market share. Thus, the production of this type of product is a kind of cash generator for the entire enterprise, that is, to provide financial support for developing products.

"Dogs"- products with limited sales in an established or declining industry. For a long time on the market, these products failed to win the sympathy of consumers, and they are significantly inferior to competitors in all respects (market share, cost size and structure, image, etc.), in other words, they do not produce and do not need significant the amount of financial resources. An organization with such products may try to temporarily increase profits by penetrating special markets and reducing their maintenance costs, or withdraw from the market.

"Difficult Children"("question marks", "calves") - products with little market impact (small market share) in an emerging industry. As a rule, they are characterized by weak customer support and unclear competitive advantages. Competitors dominate the market. Because low market share usually means little profit and limited revenue, these products in high-growth markets require a lot of money to maintain market share and, of course, even more money to increase that share further.

In a strategic analysis of the position of individual product groups or products on the market, it should be taken into account that "difficult children" under certain conditions can become "stars", and "stars" with the advent of maturity will turn first into "cash cows" and then into "dogs". Based on the data of the BCG matrix, you can choose the following main options for the marketing strategies of the enterprise:

Growth and increase in market share - the transformation of the "question mark" into a "star";

Maintaining market share is a strategy for cash cows whose revenues are important for growing product types and financial innovation;

“harvesting”, that is, obtaining short-term profits as much as possible, even at the expense of reducing market share, is a strategy for weak “cash cows” deprived of a future, unfortunate “question marks” and “dogs”;

Liquidation or abandonment of the business and the use of
resulting funds in other industries - a strategy for
"dogs" and "question marks" that have no more options
invest to improve your position.

The BCG matrix can be used:

The advantages of the BCG matrix in terms of using it as a tool for strategic analysis of the internal environment of an enterprise include the following:

Focuses on the consumer, the key end results of the enterprise - the product (product basket of the enterprise), the volume of its production and sales and its profitability, starting from which it is possible to analyze all the steps taken for this within the organization;

It makes it possible to visualize and analyze in detail the results of using the adopted marketing strategies of the enterprise, the position in the market and the contribution of each product (type of activity) to the overall results of the enterprise;

Shows possible priorities when choosing options for marketing, production and financial decisions for various types of activities, competition strategies, the formation of a business portfolio of an enterprise;

Gives a certain general picture of the demand and competitiveness of the company's products;

Helps to justify various options for marketing strategies;

It is a simple, easy to understand and use approach to the strategic analysis of the company's product basket.

To the main shortcomings BCG matrices can be assigned:

More focused on enterprises - leaders or striving for leadership;

Does not give an answer about the strategic potential, capabilities of the enterprise and the efficiency of the use of its resources. Such an important direction of strategic analysis as the analysis of enterprise resources remains outside the framework of the matrix;

It does not answer the questions of what will happen to “difficult children”: will they grow into leaders or losers, how long will “stars” burn and give high milk yields to “cows”;

When preparing the matrix, it may be difficult to find relevant information on competitors' products, for example, their cost, which is not included in statistical reporting, as well as in the balance sheets and annual reports of enterprises, which can be found in the business register. For successful application, the matrix requires good knowledge of competitors, the market, fairly accurate positioning of the company's products on it, but does not provide analysis tools suitable for this;

The matrix focuses on the financial flows and product strategies of the enterprise, while strategies in other areas of activity are no less important for it: in production, technology, personnel, management, investments, etc.;

It does not take into account the nature of the market, the number of competitors and other market factors, which, without additional analysis, may lead to the adoption of incorrect or less profitable strategies of action.

The BCG matrix has received wide recognition in the theory and practice of management, and is included for study in many textbooks on strategic management. Despite the noted shortcomings, it still remains a useful tool for planning sales, determining the product strategies of an enterprise. Although economic conditions have changed a lot since the creation of the matrix - in the context of globalization, the number of external factors and the speed of changes in the market have increased significantly, nevertheless, its construction very clearly demonstrates the current state of the enterprise's product portfolio and provides the basis for making new decisions in the field of strategic management.

McKinsey Matrix

An extension of the approach proposed by the BCG is the "Industry attractiveness - the strategic position of the enterprise" matrix, developed by General Electric with the participation of the McKinsey consulting firm to analyze its product portfolio. In the literature on strategic management, it is found under these two names. When constructing it, the authors took into account a number of shortcomings of the matrix of the Boston Consulting Group, introduced into the analysis a much larger number of market factors and evaluation criteria.

The McKinsey matrix is ​​also built in a two-dimensional coordinate system, the vertical axis in which is a multi-factor vector "attractiveness of the industry (product market)", and the horizontal axis is the competitive position of the business unit of the enterprise (product) in this market. To assess the positions of the enterprise's products, integral indicators "good" (high), "average", "low" are used. They consist of estimates of a number of factors, the choice and calculation of which is carried out in the process of developing a matrix by an enterprise. In table. 6.1 shows the factors that can be used to assess the attractiveness of the product market and its competitive position (the position of the business unit of the enterprise) in this market. It should be emphasized that according to both criteria in Table. 6.1 provides an approximate list of evaluation factors. In each case, their choice is determined by the enterprise itself, which allows taking into account the characteristics of each industry and each enterprise.

Table 6.1

Factors that determine the attractiveness of the market and the strategic position of the company's products

The matrix consists of nine fields (squares), or has a dimension of 3x3. Compared to the BCG matrix, it is more detailed and allows you to give not only a more detailed classification of the types of products of the enterprise, but also to consider more opportunities for the strategic choice of its activities (Fig. 6.4). The sales volumes of the analyzed types of products are shown on the matrix in the form of circles. Their size should correspond to the total sales of products of this type on the market. The share of the enterprise is allocated in this circle as a segment. The strategic positions of the product (business lines) with this construction of the matrix improve as it moves in it from right to left and from bottom to top.

An enterprise that decides to use the McKinsey matrix must evaluate its position for each of those listed in Table. 6.1 factors. Their numerical value is determined by the method of expert estimates. To calculate such ratings, for example, you can use a scale of values ​​from 1 to 5, which allows you to distinguish three levels of ratings: 1-2 - low, 3 - medium, 4-5 - high. Other scales may be used if necessary. Consider, using a conditional example, how this matrix is ​​built.

The assessment of the level of attractiveness of the industry is calculated in the following order:

1. A range of factors or indicators is established by which the attractiveness of the industry (product market) will be assessed. Such factors may be industry growth, intensity of competition, average profitability of industry products, industry growth, market size, technological stability, etc. (see Table 6.1). The developers of the matrix themselves determine what factors should be taken into account when assessing the industry.

2. The share of each factor in the overall assessment of the attractiveness of this market in terms of its significance for the enterprise is determined. Those factors that are most important in assessing the attractiveness of an industry are given higher weights, those less important are given lower weights. For ease of calculation, the weights are distributed in such a way that their sum equals one.

3. Each of the factors is given an assessment of the degree of its attractiveness for the company in the evaluated industry. It is determined depending on what it carries with it the ability to achieve the goals of the company. Evaluation is carried out on a five-point scale: 5 - the most attractive, 1 - the least attractive parameter. For example, if an enterprise aims to expand sales volumes, and the industry is not growing, then the industry growth parameter will be rated 1. This will mean that it poses a threat to the company.

4. A generalized assessment of the attractiveness of the market is calculated. The assessment of the relative importance of each factor is multiplied by the corresponding assessment of its attractiveness and all the results are added up. In total, an integral assessment of the attractiveness of the industry is obtained. The maximum industry attractiveness rating can be 5, and the minimum is 1.

A conditional example of calculating the attractiveness of the industry is given in Table. 6.2. The overall score of 4.5 indicates that this industry (the release of a given product, service) is very attractive for the enterprise.

Table 6.2

CALCULATION OF ATTRACTIVENESS OF THE INDUSTRY

The integral (general) assessment of the competitive position in the market of each product manufactured by the enterprise is calculated similarly to the calculation of the market attractiveness assessment. In essence, it reflects a cumulative assessment of the strength of the enterprise in the analyzed type of activity in the market, its strengths and weaknesses in comparison with competitors. When conducting a strategic analysis of an enterprise's business portfolio using the McKinsey methodology, management must also determine whether to evaluate each product (line of business) based on the same group of factors or based on the most significant factors for the market for each product. Using the first approach creates a level playing field for comparing the products of the enterprise's business portfolio and determining strategies in this area. The second approach can make it possible to draw a more accurate conclusion about the competitive position of the enterprise in the market for this product. An assessment of the strategic position in the competition of each product (line of activity) determines its place along the horizontal matrix and shows whether it occupies a strong, medium or weak position on it.

After estimates of the attractiveness of the market and the competitive position of the company's products are obtained, a positioning matrix for each of its types is built in the coordinate system "attractiveness of the industry / competitive position of products". Each of the axes is divided into three equal parts, characterizing the degree of attractiveness of the market (high, medium, low) and the position of the company's products on it (good, medium, poor). The intersection of the lines coming from them forms nine squares, or fields of the matrix. Each product of the enterprise with an indication of its market share is placed in one of them in accordance with the estimates obtained. The total sales of products of this type in the industry and the market share of the enterprise, as we noted earlier, are depicted in the matrix for clarity in the form of a circle with the selection of the enterprise sector in it. The area of ​​the circle is determined based on the general proportions of sales volumes of all analyzed products of the enterprise.

What do the results of the analysis say? If, for example, the company's product is in the most favorable upper left cell, it can be said that it is in a good competitive position in a very attractive market and already has such and such a share of it. This means that there are favorable growth prospects for an enterprise in this area and it can pursue such a strategy. On the model of the McKinsey matrix shown in fig. 6.4 shows possible strategic decisions on products that fall into the corresponding cells of the matrix.

Rice. 6.4. McKinsey matrix model

For products that hit into three cells of the upper left part of the matrix,(maybe better like this:into three cells with high market attractiveness) the enterprise should strive to apply the development strategy. They have a good competitive position in attractive industries, therefore, they are the highest priority for investment. The next highest priority products are placed in three cells, going diagonally from the lower left to the upper right corner of the matrix. The activities in the upper right square (called the "Question Mark") may have a good future, but for this the enterprise should make considerable efforts to improve their competitive position. Products in the lower left box are one of the important sources of cash. They are important today for maintaining the normal life of the enterprise, but they may die, since the attractiveness of this line of business is low.

For departments whose products are three cells in the lower right corner of the matrix, ,(maybe better like this:three cells with low market attractiveness) commonly recommended strategies are "harvest" or pruning. These types of activities are in an undesirable position for the enterprise, they require a fairly quick and effective intervention in order to prevent possible serious negative consequences for the enterprise.

The McKinsey matrix can be used in the same ways as the BCG matrix:

To determine the prospects for certain types of products or services, activities or divisions of the enterprise and make strategic decisions on them,

For the formation of the business portfolio of the enterprise and its optimization;

To substantiate strategic decisions on the distribution or redistribution of enterprise resources directed to various types of activities;

For negotiations between the top managers of the enterprise and heads of departments and making decisions on the amount of investment in a particular area of ​​activity.

From the point of view of its use as a tool for strategic analysis of the internal environment of the enterprise, it retains almost all dignity Boston Matrix, but represents its more complex, flexible and detailed form. Its advantages include taking into account the greatest number of factors that are significant for the enterprise, using, along with high and low, also intermediate average estimates, highlighting areas for using the enterprise's resources, which are most likely to lead to strengthening its strategic positions.

To the main shortcomings McKinsey matrices ( some of them are also characteristic of the Boston Matrix) can be attributed to:

It is based on the analysis and statement of what has been achieved and cannot, without additional research, give a similar picture for the future, take into account the impact of changes in the external and internal environment of the enterprise;

With multi-product production, it loses such an advantage as visibility or requires separate consideration of individual product groups;

More complex and time-consuming to construct compared to the Boston matrix;

When preparing a matrix, it may be difficult to find relevant information on competitors' products, for example, their cost and profitability, which is not included in statistical reporting, as well as in balance sheets and annual reports of enterprises. For successful application, the matrix requires good knowledge of competitors, the market, fairly accurate positioning of the company's products on it, but does not provide analysis tools suitable for this;

The matrix focuses on the financial and product strategies of the enterprise, while strategies in other areas of activity are no less important for it: in production, technology, personnel, management, investment, etc.;

Does not exclude subjective, inaccurate assessments of various significant factors, which may lead to the adoption of incorrect or less profitable action strategies.

(will go to the section on organizations) One of the varieties of the considered approach can be considered the McKinsey 7-C model, which pays attention to 7 main internal factors of the organization that influence its activities. These include: strategy, sum of skills, shared values, organization structure, systems, company employees, style. The relationship of these factors is shown in Figure 6.2. This representation of the model is based on the idea that the chosen strategy manages all the selected elements of the organization and corresponds to its goals.

.

The significance of the McKinsey 7-C model is associated primarily with the fact that it shows the importance for strategic planning not only of developing financial indicators, but also of taking into account the quality of work and qualifications of employees, as well as human relations and personal needs of organization members reflected in concepts of “shared values” and “organization culture”. The concept of "structure" in it implies not only the organizational structure of the enterprise, but also the quality of the division of labor. The concept of "system" covers all accepted technologies, including management ones.

ModelP1 MS(we will include it with reference to Petrov, then SWOT)

All models of strategic analysis (choice) discussed above are based on economic and intuitive analysis. None of them has an explicit formalized

solutions. A model in which a formalized approach is implemented

in strategic analysis (selection), is PIMS ("Impact

profit marketing strategy"). Within the framework of the regression model, not only the factors that are most closely related to profitability are determined, but also the degree of their relative influence as variables on the target function.

Initially, the model was based on information from General

Electric. Then, in addition to this information, data from many other corporations were added. And for project management

functioning of this model, the Institute for Strategic

planning. Number of participants (companies) of this model all the time

increased, as a result of which the model database was constantly growing.

Currently, the database of the model consists of materials from about 3000 SHPs from several hundred companies, mainly

North American and European. Thus, companies giving

information on their types of business (and this is data on current

technical, economic and accounting indicators of the business, the state of the serviced market, the leading competitors of the enterprise, etc.), thereby increasing the representativeness of the model, and in return receive the estimated data of the model, which serve as the basis for strategic analysis (choice). Its essence lies in the fact

that the company, comparing calculated model and actual data,

gets the opportunity to determine which strategic actions

must be produced to succeed, what can be expected

from specific strategic choices.

In the model under consideration, the objective functions are the accounting return on investment (ROI), determined by the ratio of income, after deducting corporate costs, to the amount of working and fixed capital at residual value, and cash flow (Cash Flow). Each business in the model is described by more than 30 factors that, according to the ideologists of the model, have the greatest influence on the adoption of one or another line of action. All factors can be divided into (three groups of analyzed strategic and situational variables) three main blocks: competitive situation, production structure and market situation. You can name some variables in each block. In the first - market share, relative market share and relative product quality, the increase of each of them positively affects profitability. In the second block - the ratio of the amount of invested capital to the volume of sales and added value (an increase in these indicators negatively affects profitability), as well as the degree of use of production capacities and the level of labor productivity (an increase in them has a positive effect on profitability). Finally,

Rice. 6.6. Basic building blocks of a PIMS model with examples of specific variables

(the “+” sign means a favorable effect on profitability, the “-” sign -

opposite effect)

in the third block - indicators of market growth (positive impact

on profitability), industry capital intensity, cost ratio

on marketing to the amount of sales, the total volume of purchases (increasing their

usually has a negative impact on profitability).

In addition to calculating multiple regression equations, which

show how the objective functions will change depending on

from changing various variables, i.e. taking into account specific strategies

in a certain market situation, a participant in model calculations

may receive four more documents.

1. The first shows what level of ROI and CF will be normal

for the given nature of the market environment, use

investments, type of company and historical model

strategic actions. These calculations are based on real

past experience of business lines that have been in such

same conditions. Deviations of the company's ROI from the normal,

for example, it can show whether a business is doing well or badly

in the company, what are the critical success factors.

2. The second shows strategic sensitivity, i.e. prediction

what would change (for various periods - short-term,

long-term), if any

strategic changes. Sensitivity shows how

profitability depending on future valuations (shares

market, capital intensity, labor productivity, etc.), represented by

3. The third document characterizes the optimal PIMS strategy,

i.e. predicts which combination of strategic actions

will give the best value of ROI, CF.

4. The fourth block is the results of calculations according to the simplified model

PIMS, which takes into account only 18 variables affecting profitability,

and not 37, as in the main model. This block contains elements

all previous blocks, but not in such a detailed form.

It is believed that the simplified model is important in cases where

difficult to get all the information needed for development

PIMS models in full.

The undoubted advantage of the model, according to many researchers,

is the use of empirical material. However

application of PIMS data, as well as any other economic and mathematical

models, can only serve as a means in making

managerial decisions, not as a substitute for them.

The database is formed at the Institute of Strategic Planning,

which is located in Boston (Massachusetts, USA) and has

branches in other countries.

One of the biggest advantages of the model is that it causes

discussion and thought provoking. Conclusions may be drawn

too hastily, but the debate always takes place at the proper level

and essentially.

The disadvantage of the PIMS model is that it tends to be somewhat mechanical.

view and detachment from the realities of business. Among the adherents of this

models are especially common among supporters of the technical approach

to planning, which negatively affects its reputation

in the eyes of those who build their strategy on the basis of entrepreneurial

At the same time, the undoubted advantage of this model is

the research opportunities it opens up. Based on these studies

there are many new ideas about various aspects

strategies.

As for the applicability of this model for the conditions of Russia, then

should be said to collect the necessary and representative information

to build a similar model for Russian enterprises

not yet possible.

SWOT-analysis

SWOT analysis is the most comprehensive strategic

enterprise analysis. However, in the domestic literature

on strategic planning and management, he

found more reflections, in contrast to the BCG matrices considered above

and GE, as well as PIMS models. Therefore, it seems necessary

expand on this method in more detail.

SWOT-analysis (abbreviated from the first letters of the words: strength - strength,

weakness - weakness, opportunity - opportunity, threat - threat)

comprehensively explores the external environment and resource potential

enterprises. At the same time, special attention is paid not only to

statement of facts, but the definition of "opportunities" and "threats" that

brings into the activity of the enterprise the external environment

environment, and "strengths" and "weaknesses" arising from the available resource

potential of the primary link of management. Based on the above,

SWOT analysis is a study carried out

sequentially according to the following procedure.

The BCG Matrix is ​​a tool for strategic portfolio analysis of the market position of goods, companies and divisions based on their market growth and market share. Such a tool as the BCG matrix is ​​currently widely used in management, marketing, and other areas of the economy (and not only). The BCG matrix was developed by the Boston Consulting Group, a management consulting group, in the late 1960s under the direction of Bruce Henderson. It is to this company that the matrix owes its name. The Boston Consulting Group Matrix was one of the first portfolio analysis tools.

Why do you need a BCG matrix for a company? Being a simple but effective tool, it allows you to identify the most promising and, on the contrary, the “weakest” products or divisions of the enterprise. Having built a BCG matrix, a manager or marketer gets a clear picture, on the basis of which he can decide which goods (divisions, assortment groups) should be developed and protected, and which should be eliminated.

Construction of the BCG matrix

Graphically, the BCG matrix represents two axes and four square sectors enclosed between them. Consider the phased construction of the BCG matrix:

1. Collection of initial data

The first step is to make a list of those products, divisions or companies that will be analyzed using the BCG matrix. Then for them you need to collect data on sales and / or profits for a certain period (say, for the past year). In addition, you will need similar sales data for a key competitor (or a set of major competitors). For convenience, it is desirable to present the data in the form of a table. This will make them easier to handle.

The first step is to collect all the source data and group them in a table.

2. Calculation of the market growth rate for the year

At this stage, you need to calculate the annual increase in sales (revenues) or profits. Alternatively, you can calculate both the increase in revenue and the increase in profit for the year, and then calculate the average. In general, our task here is to calculate the growth rate of the market. For example, if 100 units were conditionally sold last year. goods, and this year - 110 units, then the market growth rate will be 110%.

Then, for each analyzed product (division), the market growth rate is calculated.

3. Computing Relative Market Share

Having calculated the market growth rate for the analyzed products (divisions), it is necessary to calculate the relative market share for them. There are several ways to do this. The classic option is to take the sales volume of the analyzed product of the company and divide it by the sales volume of a similar product of the main (key, strongest) competitor. For example, the sales volume of our product is 5 million rubles, and the strongest competitor selling a similar product is 20 million rubles. Then the relative market share of our product will be - 0.25 (5 million rubles divided by 20 million rubles).

The next step is to calculate the relative market share (relative to the main competitor).

4. Construction of the BCG matrix

At the fourth last stage, the actual construction of the matrix of the Boston Consulting Group is carried out. From the origin we draw two axes: vertical (market growth rate) and horizontal (relative market share). Each axis is divided in half, into two parts. One part corresponds to low values ​​of indicators (low market growth rate, low relative market share), the other corresponds to high values ​​(high market growth rate, high relative market share). An important question to be solved here is what values ​​of the market growth rate and relative market share should be taken as central values ​​dividing the axes of the BCG matrix in half? The standard values ​​are as follows: for the market growth rate - 110%, for the relative market share - 100%. But in your case, these values ​​\u200b\u200bmay be different, you need to look at the conditions of a particular situation.

And the final action is the construction of the BCG matrix itself, followed by its analysis.

Thus, each axis is divided in half. As a result, four square sectors are formed, each of which has its own name and meaning. We will talk about their analysis later, but for now it is necessary to put the analyzed goods (divisions) on the field of the BCG matrix. To do this, sequentially mark the market growth rate and the relative market share of each product on the axes, and draw a circle at the intersection of these values. Ideally, the diameter of each such circle should be proportional to the profit or revenue corresponding to this product. So you can make the BCG matrix even more informative.

Analysis of the BCG matrix

Having built the BCG matrix, you will see that your products (divisions, brands) ended up in different squares. Each of these squares has its own meaning and a special name. Let's consider them.

The field of the BCG matrix is ​​divided into 4 zones, each of which has its own type of product/division,
development features, market strategy, etc.

STARS. They have the highest market growth rates and hold the largest market share. They are popular, attractive, promising, rapidly developing, but at the same time require significant investment in themselves. That's why they are "Stars". Sooner or later, the growth of “Stars” begins to slow down and then they turn into “Cash Cows”.

CAIRY COWS(aka “Money Bags”). They are characterized by a large market share, with a low rate of its growth. Cash Cows do not require expensive investments, while bringing a stable and high income. The company uses this income to fund other products. Hence the name, these products literally "milk". WILD CATS (also known as "Dark Horses", "Problem Children", "Problems" or "Question Marks"). They have it the other way around. The relative market share is small, but the sales growth rate is high. It takes a lot of effort and expense to increase their market share. Therefore, the company must conduct a thorough analysis of the BCG matrix and assess whether the “Dark Horses” are capable of becoming “Stars”, whether it is worth investing in them. In general, the picture in their cases is very unclear, and the stakes are high, which is why they are “Dark Horses”.

DEAD DOGS(or "Lame ducks", "Dead weight"). They are all bad. Low relative market share, low market growth. Their income and profitability are low. They usually pay for themselves, but nothing more. There are no prospects. Dead Dogs should be disposed of, or at least their funding stopped if they can be dispensed with (there may be a situation where they are needed for the Stars, for example).

BCG Matrix Strategies

Based on the analysis of goods according to the matrix of the Boston Consulting Group, the following main strategies of the BCG matrix can be proposed.

INCREASE MARKET SHARE. Applied to "Dark Horses" in order to turn them into "Stars" - a popular and well-selling item.

KEEPING MARKET SHARE. Suitable for "Cash Cows", as they bring a good stable income and it is desirable to maintain this state of affairs as much as possible.

REDUCING MARKET SHARE. Perhaps in relation to “Dogs”, unpromising “Difficult Children” and weak “Cash Cows”.

LIQUIDATION. Sometimes the liquidation of this line of business is the only reasonable option for "Dogs" and "Difficult Children", which, most likely, are not destined to become "Stars".

Conclusions on the BCG matrix

Having built and analyzed the matrix of the Boston Consulting Group, a number of conclusions can be drawn from it.

Advantages and disadvantages of the BCG matrix

The BCG matrix, as a portfolio analysis tool, has its pros and cons.

Let's list some of them.

Advantages of the BCG matrix:

• a well-thought-out theoretical basis (the vertical axis corresponds to the product life cycle, the horizontal axis corresponds to the effect of scale of production);
• objectivity of the estimated parameters (market growth rate, relative market share);
• ease of construction;
• clarity and clarity;
• great attention is paid to cash flows;

Disadvantages of the BCG matrix:

• it is difficult to clearly define the market share;
• only two factors are evaluated, while other equally important ones are overlooked;
• not all situations can be described within the 4 studied groups;
• does not work when analyzing industries with a low level of competition;
• the dynamics of indicators, trends are almost not taken into account;
• the BCG matrix allows you to develop strategic decisions, but says nothing about tactical moments in the implementation of these strategies.

A new product being implemented by a firm may be marginally profitable in a fast-growing market, and a highly profitable product may become obsolete. Therefore, when forming a prospective product strategy for an enterprise, managers need to take into account the location of each product on the diagram of its life cycle, using the matrix of the Boston Consulting Group (BCG), which, in addition, shows the share occupied by any product in the total amount of sales of the company in different markets. The BCG matrix was created by the founder of the Boston consulting group, Bruce D. Hendersen.

This matrix is ​​based on a product life cycle model. In accordance with this model, a product goes through four stages in its development: entering the market (products are “question marks”); growth (products - "stars"); maturity (goods - "cash cow"); recession (goods - "dogs").

For " stars» characterized by high sales growth and high market share. Market share must be maintained and increased. " Stars' are very profitable. But, despite the attractiveness of this product, its net cash flow is quite low, as it requires significant investment to ensure a high growth rate.

For " cash cows is characterized by a high market share, but a low sales growth rate. " Dairy Cows" should be protected and controlled as much as possible. Their attractiveness is explained by the fact that they do not require additional investments and at the same time provide a good cash income. Proceeds from sales can be used to develop difficult children» and for support « stars».

For goods " dogs» low growth rate and minimal market share. The product, as a rule, has a low level of profitability and requires a lot of attention from the manager. "So-bak" must be removed from production and / or trade.

"Question Marks" needs to be studied. They have low market share but high growth rates. In the future, they may become stars', and ' dogs».

The stage of the product life cycle on the “matrix” diagram of the BCG is formed according to two indicators. The horizontal axis plots the share occupied by any product produced by the firm in the market relative to the share of the strongest (occupying the maximum market for this product) competitor firm. The vertical axis shows the market (industry) growth rate index.

The size of the radius of the circle corresponds to the share occupied by any product produced by the company in the total amount of its sales in different markets.

When forming a promising tourism strategy for the region, tourism managers need to take into account the location of the tourism product on the diagram of its life cycle. In our example, the number of visitors served by the purpose of travel in the Karaganda region acts as a tourist product.

Number of visitors served in 2008 and 2009 and the share of the Karaganda region, as well as the strongest competitor in terms of the capacity of the tourist market, the city of Almaty, are presented in Table 1.

Analysis of Table 1 shows that the largest number of visitors served in the Karaganda region in 2009 is observed for the purpose - leisure, recreation, recreation (11632 people). At the same time, the share of the Karaganda region for this type of purpose in the total capacity of the tourism market of the Republic of Kazakhstan is 4.6%. The strongest competitor for the above goal is the city of Almaty, occupying 42.7% of the capacity of the tourist market of the Republic of Kazakhstan.

In order to visit friends and relatives in the Karaganda region in 2009, 1424 people arrived, which is 14.1% of the entire tourist market of the country. Three times more tourists come to Almaty for this purpose (44.4%).

For business and professional, as well as for religious purposes, 14 people visited the Karaganda region during the analyzed period.

Table 1 shows that a positive trend in the number of tourists served in the region under study is observed for such purposes as leisure, recreation and recreation. Other goals have a regressive trend.

According to Table 1, we will compile a BCG matrix and justify the choice of a promising tourist product of the Karaganda region. To build the BCG matrix, you must perform the following steps:

1) calculate by formulas 1-3 the parameters necessary for the image of the purposes of travel of travelers indicated in Table 1 on the BCG diagram;

2) using the tools for constructing a bubble chart, in MS EXCEL, display graphically each of the 7 goals of tourist trips in the “Row” tab window of the second step of the “Diagram Wizard” (Fig. 1, 2);

3) remove the grid lines in the third step of the "Chart Wizard";

4) set the parameters of the "Axis Format" on the "Scale" tab of the "Chart Wizard";

5) sign each of the four areas of the BCG matrix diagram.

At the first step, using formulas 1-3, we calculate the growth rate index and the relative market share of the Karaganda region in terms of the number of visitors served by travel purpose. The size of the radius of the circle corresponds to the share of the purpose of the trip "leisure, recreation and recreation" in the total amount of the number of visitors served by the purpose of travel in the Karaganda region:

Im [leisure, recreation and recreation] = 11632 / 9740 = 1.194, (4)

Sr [leisure, recreation and recreation] = 4.6/ 42.7 = 0.108, (5)

W[leisure, recreation and recreation] = 11632 / 13704 = 0.849. (6)

The results of calculating the indexes of the growth rate, the relative shares of growth, the shares of the number of served visitors for the i-th purpose of the trip in the total number of trips of the Karaganda region are shown in Table 2.

Figure 1. First step of building a bubble chart in the second step of the Chart Wizard: adding the first trip destination as a function of two variables (X values ​​and Y values)

Figure 2. The Bubble Chart step in the second step of the Chart Wizard: adding the last, sixth trip destination as a function of two variables (X values ​​and Y values)

At the fourth step of the algorithm, move the mouse pointer to the horizontal axis and see the "Category Axis" tooltip. Then press the alternative (in a normal installation, it is the right) mouse button and in the context menu that appears, select the "Format Axis" item and press the Enter key or double-click the main mouse button. In the dialog box that appears, select the "Scale" tab, in the five windows of which set the following values:

• - minimum value = 0 (in our example = -0.1 - for better display of the “bubbles” of the diagram);
• - maximum value = twice the average Sr (in our case, 0.4, since the relative market share of the goal "Visiting friends and relatives" exceeds twice the average Sr);
• - price of the main divisions = average Sr;
• - price of additional divisions = average Sr;
• - Y-axis (of values) intersects at value = mean Sr.

These settings for our example solution are shown in Figure 3.

To change the location of the horizontal axis, move the mouse pointer over the vertical axis and see the Value Axis tooltip. Press the alternative mouse button and in the context menu that appears, select the "Format Axis" item and press the Enter key or double-click the main mouse button. In the dialog box that appears, select the "Scale" tab, in the windows of which set the values:

• - minimum value = 0 (in our example = -0.2 - for better display of the “bubbles” of the chart);
• — maximum value = 2;
• - price of the main divisions = 1;
• — price of additional divisions = 1;
• - Y-axis (of values) intersects at value = 1.

The inscription of external (relative to the "Chart Wizard") text in each of the four areas of the diagram can be implemented using the "Drawing" toolbar.

The result of constructing a matrix diagram of the Boston Consulting Group using Excel business graphics tools on the example of the number of tourists served by the purpose of travel in the Karaganda region is shown in Figure 4.

Thus, Figure 4 shows that visits from friends and relatives are of great importance in the tourist market of the Karaganda region. This segment is moving from "stars" to "cash cows", having a high market share, but at the same time a low growth rate in terms of the number of tourists served. The attractiveness of the analyzed segment is that, without requiring any investment, it itself provides a good cash income.

High growth rate in the number of tourists served and high market share in line with the segment Leisure, recreation and recreation. This type of goal brings to the tourist firms of the Karaganda region a high rate of return, and at the same time requires huge investments to ensure a high growth rate.

To the segment dogs» include tourists of the analyzed region with the following train-doc goals: « religion, pilgrimage", "commercial" ("shop tours"), "business and professional purposes". The growth rate of this group of goals is low, the market share is insignificant, and the level of profitability is low. As a rule, it is necessary to get rid of "dogs", giving preference to the most profitable segments. But at present, the state attaches great importance to the development of tourism, in connection with which it becomes relevant to solve the problem of "reviving" these types of tourism.

The therapeutic type of tourism in the Karaganda region belongs to "milk cows" in the future, turning into "exiled dogs", in the event that appropriate measures are not taken to maintain and further develop this type of tourism.

Thus, the obtained results of the BCG matrix can serve as the basis for the formation of a promising tourism strategy for the Karaganda region, having a number of advantages: objectivity of the analyzed parameters; clarity of the results obtained and ease of construction; the possibility of combining the analysis of the tourism portfolio with the life cycle model of one of the types of tourism.

Bibliography

1 Gorshkov A. F. Computer modeling of management. - M .: Publishing house "Exam", 2007. - 622 p.

2 Tourism in Kazakhstan 2005-2009: Stat. Sat. - Astana, 2010. - 148 p.

3 Tourism in Karaganda region 2005-2009: Stat. Sat. - Karaganda, 2010. - 54 p.

4 Development of tourism and hotel industry in the Almaty region: Stat. Sat. - Almaty, 2009. - 55 p.

It is very important for a company to understand which of the products bring profit to it, and which require large expenses, but do not bring anything. A very popular tool for planning a company's assortment, which helps determine the attractiveness of products, is called the BCG matrix. BCG is the first letters of the words "Boston Consulting Group", which developed this matrix. The BCG matrix is ​​a portfolio tool: it allows you to analyze all the products that the company deals with.

The matrix allows you to analyze two parameters. The first is the growth rate of the market segment we need. This criterion tells us about the attractiveness of the market for the company at the moment. The second parameter is the market share that the company has relative to the most dangerous competitor for the company. This parameter allows us to tell how competitive a given product is in a given category. When determining these parameters, it is very important to be as honest as possible.

According to these two parameters, several groups of goods are distinguished:

· "Stars" - products with a large market share and a high growth rate. These are the leading products, with the greatest potential, often the most recognizable. Such products require large financial investments to promote them as long as the market continues to grow. Perhaps in the future they will become "cash cows".

· "Cash cows" - products with a large market share and low growth. These goods have good sales in a market that is no longer growing and has long been divided. Such products do not require investments in promotion, on the contrary, they give the company a large profit. It is enough for the company to maintain the position of this product for as long as possible.

· "Question marks" - products with a small market share and a high growth rate. These products are not as profitable as the leading products, but as the market grows, they also have a chance to grow. Such goods require high costs, otherwise they can quickly turn into "dogs", respectively, they must either be developed in order to capture a large market share, or deinvested. The company must analyze the potential of the product, its capabilities, and choose the right strategy.

· "Dogs" - goods with a small market share and with a low growth rate. The potential of such products is not very great: they bring little profit compared to other products. Perhaps they have some value, perhaps, on the contrary, they need to be got rid of and focused on something more attractive. Such goods require significant costs with uncertain growth prospects. Spending a lot of money on such products is not recommended.

So the BCG matrix allows us to understand the attractiveness of a particular group of goods and determine the strategy for promoting goods. It is also important to understand that it is based on one parameter - the analysis of market share, and if there are few competitors in this niche, it will not be so useful.