The matrix is based on two key dimensions: _Market Growth Rate (MGR)_ and Relative Market Share (RMS). Companies are required to calculate the MGR of their products or services compared to the market average, and the RMS compared to a key competitor or the market leader.
Based on the positions and classifications in the BCG matrix, Maruti Suzuki motors' product range can be assessed as follows:
1. Stars:
- These have high MGR and high RMS, indicating strong growth potential and a dominant market share.
- In Maruti Suzuki's case, this category of products might include:
- Nexa Showrooms (with premium cars)
- Recently Launched Models like Brezza, Grand Vitara, Jimny.
2. Question Marks (or Problem Child):
- Question Marks have high MGR but low RMS, implying that they are in rapidly growing markets but facing intense competition.
- Maruti Suzuki's example might be:
- Entry into SUV Segment (due to intense competition)
- Exports
- These require heavy investment to gain market share and may eventually become Stars or Cash Cows.
3. Cash Cows:
- These have low MGR but high RMS, indicating established products with a sustainable market share.
- Potential Products:
- Alto, 800, Wagnor
- CNG and Diesel Variants
- Cash Cows generate more cash than required to sustain ongoing operations, which can be diverted to investing in Stars and Question Marks.
4. Dogs:
- Dogs have low MGR and low RMS, meaning they have weak growth prospects and minimal market share.
- Maruti Suzuki's Potential Dogs:
- Multi-Purpose Vehicle (EECO)
- Super Carry (Commercial Light Truck)
- Dogs may be liquidated (i.e., phased out), particularly if they consistently consume resources without showing long-term potential.
Note:
- The categories and interpretations mentioned here are based on general understanding of the BCG Matrix. The actual classification may vary depending on Maruti Suzuki's internal analysis, market data, and strategic objectives.
- The BCG matrix is a useful tool for making strategic decisions, but it is important to consider additional factors such as: Customer preferences, industry dynamics, technological changes, cost structures, and long-term vision.
