BCG matrix implementation in Malaysia company
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BCG MATRIXCase Study: Malaysia Mobile Telecommunications
Presented for: Assoc. Prof. Dr. Zarina Salleh
Prepared by: Siti Nur Azzyati Saharuddin
INTRODUCTION______________________
• Develop by Bruce Henderson of Boston Consulting Group, 1960s.
• Technique that classified business as low or high performance based on their market growth rate and relative market share.
• Advantages of BCG Matrix:
1. Easy to plot
2. Catchy name for quadrants
(Star, Question Marks, Cash Cows, Dog)
BCG MATRIX
• Axis in graph present:
1. Market/industry growth – Y axis
2. Relative market share (RMS) – X axis
Annual growth for market SBU operates
Market share compare to other competitors
MARKET GROWTH RATE_____________
• Normally used as a measure of market’s attractiveness.
• Formula:
MGR = Current Sales – Last Year SalesLast Year Sales
RELATIVE MARKET SHARE_________
• Formula:
RMS =
Business Unit Sales this yearLeading rival Sales this year
BCG MATRIX
MARKET LEADERS IN
HIGH GROWTH MARKETS
NOT MARKET LEADERS IN
HIGH GROWTH MARKETS
MARKET LEADERS IN
LOW GROWTH MARKETS
NOT MARKET LEADERS IN
LOW GROWTH MARKETS
• Telecommunication industry has expand - demand from the nations increase.
• In Malaysia, telecommunication industry has been consider prominent.
• Increase in total subscribers from 27.1 million in 2008 to 42.9 million in 2013.
• Telecommunication is under Ministry of Energy, monitor by MTD (Malaysia Telecommunication Department).
INTRODUCTION______________________INDUSTRY
• Main mobile industry:
COMPANY PROFILE_______________
Maxis• Founder of company is Mr. Ananda Krishan.• Operation started in 1995.• Leading telecommunications service provider.• Rank 1st in telecommunication industry with
total subscribers of 14.1 million (2013).• Maxis marketing strategy: high profile
celebrities such as Siti Nurhaliza, Akademi Fantasia artists and others.
Celcom• Stated its operations as STM Cellular
Communications in 1988.• Oldest mobile telecommunications
company in Malaysia.• Rank 2nd in telecommunication industry by
12.03 millions subscribers (2013).• Celcom marketing strategy: Famous artist
as ambassador such as Maya Karin, Fahrin Ahmad and others.
Digi• Started to operate in 24 May 1995.• 3rd rank in Malaysia telecommunication
services provider.• Numbers of subscribers is 10.3 million
(2013).• Marketing strategy: Mascot, lower price of
services among others two main providers, catchy advertising: I will follow you songs.
According to Malaysia Forest Interactive, of different telecommunication companies:
BCG MATRIX___________________________MOBILE
TELECOMMUNICATION
Telco Market share (%) RMS Market growth (%)
Maxis 32.83 1.17 -0.10
Celcom 28.00 0.85 6.18
Digi 24.00 0.73 10.75
TuneTalk 4.90 0.15 5
U-mobile 6.98 0.21 500
XOX Com 0.92 0.03 1.02
P1 1.22 0.04 72.79
RedTone Mobile 0.47 0.01 33.34
Merchantrade 0.69 0.02 200
Star Question Marks
• U-mobile• P1• Merchantrade
Cash Cow
• Digi• Celcom• Maxis
Dog
• RedTone Mobile• Tune Talk• XOX Com
BCG MATRIX___________________________FIGURE
Relative Market Share (RMS)
Market
Growth
Rate
COMPANY PROFILE_________________
• Started its operations in April 1992.• Subsidiaries of Majlis Agama Islam
Wilayah Persekutuan (MAIWP) and Yayasan Wilayah Persekutuan (YWP).
• Marketing strategies: Website, Education booth, brochure and others.
INSTITUT PROFESIONAL
BAITULMAL
According to Unit Kemasukkan Rekod Pelajar of different courses in IPB:
BCG MATRIX___________________________INSTITUT PROFESIONAL
BAITULMAL
Courses Market share (%) RMS Market growth (%)
BM11135.87 1.43 15.30
AC11020.73 0.58 7.17
CS1101.22 0.03 - 3.45
AC1202.40 0.07 18.75
PD0037.06 0.20 -4
LCCI25.15 0.70 27.80
CAT7.61 0.21 1.12
Star
• LCCI• BM111
Question Marks
• AC120
Cash Cow
• AC110
Dog
• CS110• PD003• CAT
BCG MATRIX___________________________IPB
Relative Market Share (RMS)
Market
Growth
Rate
According to Alfa Gemilang, Account Department, here are some sales data of products and services:
BCG MATRIX___________________________ALFA GEMILANG SDN
BHD
Product/Services Market share (%) RMS Market growth (%)
Printing76% 4.31 79.49
Stationeries2% 0.03 - 10.00
Paper supply18% 0.23 - 4.41
Design services4% 0.06 - 20.00
Star • Printing
Question Marks
Cash Cow Dog• Stationeries• Paper Supply• Design Services
BCG MATRIX___________________________IPB
Relative Market Share (RMS)
Market
Growth
Rate