75 words only
Please read my earlier comment on critiquing the BCG. The BCG is a given component; the critique must be between your chosen matrix and another learner's chosen different matrix.Read one of the learner’s post and critique their choice of matrix( different than yours). Sell them on your choice by comparing your matrix to their own
Interactive #2 Unit 3 Week 6
Is the Boston Consulting Group (BCG) matrix reliable? Why/why not?
The BCG matrix is very reliable realizing the restraints it may present. The fact is that it is easy to understand and easy to perform which gives it an advantage over other matrices ("BCG Matrix," 2013). It is a matrix based on the growth rate and market share of a product or company and is used to evaluate the potential of that entity and should it be kept or sold ("BCG Matrix," 2013). There are some areas that could present issues since it can simplify a situation which does not lead to good analysis ("BCG Matrix," 2013). The fact that it deals simply with market share and growth rate can be viewed as a limitation of this matrix ("Advantages/Disadvantages BCG Matrix," 2014). With that being said knowing these restrictions going into an analysis allows companies to use the experience curve to its advantage and provides a base for companies to choose and prepare for future actions, which makes it reliable and practical ("Advantages/Disadvantages BCG Matrix," 2014).
Analysis of Coca-Cola (Cash Cow) and Dasani (Star)
The BCG Matrix is divided into four sectors; cash cows, stars, question marks, and dogs. The soft drink Coca-Cola is a cash cow for the Coca-Cola Company as it has been the number one selling soft drink basically forever and currently has a 17% market share of all soda sales (Hartlaub, 2014), (Said, 2013). The cash cow in a company is one of the most profitable brands and should ‘milked’ to deliver as much cash as possible which some of that can then be used to support stars ("BCG Matrix," 2013).
A star in Coca-Cola’s portfolio would be their bottled water Dasani which has had double digit growth in the last several quarters (Blanc, 2014). Dasani fits this sector as it has a high growth rate and has an 18% market share of bottled in the US (Trefis Team, 2014). Using cash from Coca-Cola to invest in Dasani has the potential to make it another cash cow according to the BCG Matrix ("BCG Matrix," 2013). This seems to be a reliable and fast way to analyze two products in Coca-Cola’s portfolio and provides good direction in relation to the deliverables of the BCG Matrix.