BCG matrix implementation in Malaysia company

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BCG MATRIX Case Study: Malaysia Mobile Telecommunications Presented for: Assoc. Prof. Dr. Zarina Salleh Prepared by: Siti Nur Azzyati Saharuddin

description

BCG Marketing Tools that been described briefly and plus 3 case study - including industrial (telecommunication), services company (education) and SME's (Percetakan Alfa Gemilang).

Transcript of BCG matrix implementation in Malaysia company

Page 1: BCG matrix implementation in Malaysia company

BCG MATRIXCase Study: Malaysia Mobile Telecommunications

Presented for: Assoc. Prof. Dr. Zarina Salleh

Prepared by: Siti Nur Azzyati Saharuddin

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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

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• 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

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MARKET GROWTH RATE_____________

• Normally used as a measure of market’s attractiveness.

• Formula:

MGR = Current Sales – Last Year SalesLast Year Sales

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RELATIVE MARKET SHARE_________

• Formula:

RMS =

Business Unit Sales this yearLeading rival Sales this year

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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

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• 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

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• Main mobile industry:

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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.

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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.

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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.

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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

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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

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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

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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

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Star

• LCCI• BM111

Question Marks

• AC120

Cash Cow

• AC110

Dog

• CS110• PD003• CAT

BCG MATRIX___________________________IPB

Relative Market Share (RMS)

Market

Growth

Rate

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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

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Star • Printing

Question Marks

Cash Cow Dog• Stationeries• Paper Supply• Design Services

BCG MATRIX___________________________IPB

Relative Market Share (RMS)

Market

Growth

Rate