Boston matrix of tesco

Current value of the product Future value of the product The Boxes Stars High market share, high market growth Stars are integral parts of every balanced product portfolio. Their markets are attractive, since they provide potential for further growth.

Boston matrix of tesco

Currently, there are more than outlets of Tesco in the international retail industry, with a larger segment of the sales being generated through its UK stores. The application of Boston Consulting Group Matrix on Tesco would help in analyzing the profitability and future prospects of the different businesses being managed under the label of Tesco.

Tesco Boston Matrix and Ansoff Matrix - Your Personal Essay Writing Service

Cash Cows There are some business units of an organization that tend to be the main source of earning for that organization due to the high market share owned by the organization. The high income potential makes them a cash cow for the firm and despite the maturity stage of the industry, the products are able to fare well.

Furthermore, the need for capital input for further growth of the market is low, therefore the cash cows are regarded as profitable for the company. For Tesco, the fresh meat section is the cash cow as these products are in high demand across the different Tesco stores.

There has been an incident which has damaged the brand image of Tesco in the domain of the meat supplied by the retail giant, however, the management has taken necessary steps to rectify the situation Sonne, The fresh meat unit is operating in a mature industry as there are other major retail stores supplying fresh meat products to the market, suggesting that the market is operating at a mature stage.

The fresh fruits and vegetables also constitute a part of the profitable business unit, along with the high market share. The high demand of these products and significantly high market share suggests the potential of these products to create revenues for Tesco.

The fresh produce market is already established, thus needing little investment for further development, making it a profitable avenue for cash generation in the long run. Stars Apart from the cash cows, there are some products or business units that create growth opportunities for the organization.

In such a case, the market is characterized by the growth opportunities, which creates a supportive environment for the business unit to develop further.

Another important feature of stars is that they can grow into cash cows once the market is able to stabilize and mature. As a Star these products may need more investment than the input needed for cash cows.

Tesco has some products which can be identified as Star for the company as they are generating sufficient income for the company and have the chances to grow more. One of the examples of Star for the company is Tesco bank. According to Rojas Tesco bank has expanded its market presence by offering the customers current account facility along with other services such as insurance and loans.

The banking industry has high growth potential, therefore it can be concluded that Tesco bank will gain a higher market share in the coming years.

Tesco finest range is also a Star for the company as the selected premium products target the customers seeking premium quality products and are willing to pay more for them.

Question Marks Not all business units being managed by an organization can work smoothly.

Boston matrix of tesco

The future of these products is uncertain as the market conditions hint a possibility of attaining future growth. Therefore, the developing market environment can become a positive source of stability of these products. BCG Matrix Analysis The Boston Consulting Group’s growth-share matrix is the model of analysing the company’s portfolio of SBUs.

The following figure plots the position of Virgin’s SBUs.

Boston matrix of tesco

The following figure plots the position of Virgin’s SBUs. It is used by marketers who have objectives for growth.

Market Planning with Tesco

Ansoff's matrix offers strategic choices to achieve the objectives. There are four main categories for selection. Ansoff's Product/Market Matrix Market Penetration Here we market our existing products to our existing customers.

This means increasing our revenue by, for example, promoting the . ANsoff MAtrix The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy.

Ansoff’sproduct/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The market options matrix is different from Ansoff matrix in the sense that it not only presents the options of launching new products and moving into new markets, but also involves exploration of possibilities of withdrawing from certain markets and moving into unrelated markets (Lynch, ).

Tesco is a large scale retailer that is working in different parts of the world, including UK, China, India, Hungary etc. Currently, there are more than outlets of Tesco in the international retail industry, with a larger segment of .

The Boston Box is a tool for portfolio management. The idea is to develop a balanced portfolio of products or business units that either generate or consume cash.

The Boston Box – or Growth-Share-Matrix – was named after the Boston Consulting Group, since it was developed by BCG’s founder.

ANsoff MAtrix The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. Ansoff’sproduct/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The Boston Box is a tool for portfolio management. The idea is to develop a balanced portfolio of products or business units that either generate or consume cash. The Boston Box – or Growth-Share-Matrix – was named after the Boston Consulting Group, since it was developed by BCG’s founder. weaknesses of using the Boston Matrix to help make decisions in business. I will first briefly explain the Boston Matrix and then analyse its effectiveness as an aid to making a marketing strategy. Like Ansoff's matrix, the Boston Matrix is a well known tool for marketing managers.
Unit 7 Business Strategy Assignment - TESCO