LOGIN

BCG Matrix and VRIO Framework for

Mother Dairy Creating a National
Footprint
Posted by Sophia Morgan on Jul-30-2018

BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting
Group, which helps in analysing the position of a strategic business unit and the potential it has
to offer. The matrix consists of 4 classifications that are based on two dimensions. These first of
these dimensions is the industry or market growth. The other of these dimensions is the relative
market share of the strategic business unit. Strategic business units are placed in one of these 4
classifications. The BCG matrix for Mother Dairy Creating a National Footprint will help decide on
the strategies that can be implemented for its strategic business units.

Strategic business units with high market growth rate and high relative market share are called
stars. Businesses should invest in their stars and can implement vertical integration, market
penetration, product development, market development, and horizontal integration strategies.
Strategic business units with high market growth rate and low relative market share are called
question marks. These strategic business units require close considerations whether the
business should continue with them or divest. Strategic business units with low market growth
rate but with high relative market share are called cash cows. The business should invest in
these to maintain their relative market share. Lastly, the strategic business units with low market
growth rate and low relative market share are called dogs. The business should divest these
strategic business units.

Scale Your Grade Expectation Bar HIGH!

Our perfectly written content guarantees exceptional academic performance. You can
prepare your own version without putting any extra effort at all.

HIRE US
 ✓ No Plagiarism LOGIN

✓ Quality Assurance

✓ Specialized Writers

✓ On Time Delivery

BCG Matrix of Mother Dairy Creating a National

Footprint
The BCG Matrix for Mother Dairy Creating a National Footprint will help Mother Dairy Creating a
National Footprint in implementing the business level strategies for its business units. The
analysis will first identify where the strategic business units of Mother Dairy Creating a National
Footprint fall within the BCG Matrix for Mother Dairy Creating a National Footprint.

Stars
The financial services strategic business unit is a star in the BCG matrix of Mother Dairy
Creating a National Footprint. It operates in a market that shows potential in the future.
Mother Dairy Creating a National Footprint earns a significant amount of its income from
this SBU. Mother Dairy Creating a National Footprint should vertically integrate by
acquiring other firms in the supply chain. This will help it in earning more profits as this
Strategic business unit has potential.
The Number 1 brand Strategic business unit is a star in the BCG matrix of Mother Dairy
Creating a National Footprint, and this is also the product that generates the greatest sales
amongst its product portfolio. The potential within this market is also high as consumers are
demanding this and similar types of products. Mother Dairy Creating a National Footprint
should undergo a product development strategy for this SBU, where it develops innovative
features on this product through research and development. This will help Mother Dairy
Creating a National Footprint by attracting more customers and increases its sales.
The Number 2 brand Strategic business unit is a star in the BCG matrix of Mother Dairy
Creating a National Footprint as Mother Dairy Creating a National Footprint has a 20%
market share in this category. It also the market leader in this category. The overall
category is expected to grow at 5% in the next 5 years, which shows that the market
growth rate is expected to remain high. Mother Dairy Creating a National Footprint should
use its current products to penetrate the market. This could be done by improving its
 distributions that will help in reaching out to untapped areas. This will help increase the
sales of Mother Dairy Creating a National Footprint. LOGIN

Health & Beauty Supplements

Ad Buy 100% Genuine. Free Shippin
₹499. Easy Returns. Cash On Deliver
Ad
Nykaa Wellness

Shop Now

Cash Cows
The supplier management service strategic business unit is a cash cow in the BCG matrix
of Mother Dairy Creating a National Footprint. This has been in operation for over decades
and has earned Mother Dairy Creating a National Footprint a significant amount in revenue.
The market share for Mother Dairy Creating a National Footprint is high, but the overall
market is declining as companies manage their supplier themselves rather than
outsourcing it. The recommended strategy for Mother Dairy Creating a National Footprint is
to stop further investment in this business and keep operating this strategic business unit
as long as its profitable.
The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Mother
Dairy Creating a National Footprint. This is an innovative product that has a market share
of 25% in its category. Mother Dairy Creating a National Footprint is also the market leader
in this category. The overall category has been declining slowly in the past few years.
Mother Dairy Creating a National Footprint has the power to influence the market as well in
this category. It should, therefore, invest in research and development so that the brand
could be innovated. This will help the category grow and will turn this cash cow into a star.
The overall benefit would be an increase in sales of Mother Dairy Creating a National
Footprint.
The international food strategic business unit is a cash cow in the BCG matrix for Mother
Dairy Creating a National Footprint. This business unit has a high market share of 30%
 within its category, but people are now inclined less towards international food. This change
LOGINstrategy
in trends has led to a decline in the growth rate of the market. The recommended
for Mother Dairy Creating a National Footprint is to invest enough to keep this strategic
business unit under operations. If it no longer remains profitable and turns into a dog, then
Mother Dairy Creating a National Footprint should divest this strategic business unit.

Health & Beauty Supplements

AdBuy 100% Genuine. Free Shippin
₹499. Easy Returns. Cash On Deliver
Ad
Nykaa Wellness

Shop Now

Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Mother
Dairy Creating a National Footprint. The recent trends within the market show that
consumers are focusing more towards local foods. Therefore, this market is showing a high
market growth rate. However, Mother Dairy Creating a National Footprint has a low market
share in this segment. The recommended strategy for Mother Dairy Creating a National
Footprint is to invest in research and development to come up with innovative features.
This product development strategy will ensure that this strategic business unit turns into a
cash cow and brings profits for the company in the future.
The Number 4 brand strategic business unit is a question mark in the BCG matrix for
Mother Dairy Creating a National Footprint. This strategic business unit is a part of a
market that is rapidly growing. However, this strategic business unit has been incurring
losses in the past few years. It has also failed in the attempts made at innovation by
research and development teams. The recommended strategy for Mother Dairy Creating a
National Footprint is to divest and prevent any future losses from occurring.
The confectionery strategic business unit is a question mark in the BCG matrix for Mother
Dairy Creating a National Footprint. The confectionery market is an attractive market that is
 growing over the years. However, Mother Dairy Creating a National Footprint has a low
LOGIN
market share in this attractive market. The low sales are as a result of low reach and poor
distribution of Mother Dairy Creating a National Footprint in this segment. The
recommended strategy for Mother Dairy Creating a National Footprint is to undergo market
penetration, where it pushes to make its product present on more outlets. This will ensure
increased sales for Mother Dairy Creating a National Footprint and convert this strategic
business unit into a cash cow.

Looking for help with Essay on BCG Matrix and VRIO Framework for Mother
Dairy Creating a National Footprint?
START ORDER NOW

Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Mother Dairy
Creating a National Footprint. This strategic business unit has been in the loss for the last 5
years. It also operates in a market that is declining due to greater environmental concerns.
The recommended strategy for Mother Dairy Creating a National Footprint is to divest this
strategic business unit and minimise its losses.
The Number 5 brand strategic business unit is a dog in the BCG matrix for Mother Dairy
Creating a National Footprint. This is operating in a market segment that is declining in the
past 5 years. The company also has negative profits for this strategic business unit.
However, it is expected that the market will grow in the future with environmental changes
that are occurring. The recommended strategy for Mother Dairy Creating a National
Footprint is to invest in the business enough to convert into a cash cow. This will ensure
profits for Mother Dairy Creating a National Footprint if the market starts growing again in
the future.
The synthetic fibre products strategic business unit is a dog in the BCG matrix of Mother
Dairy Creating a National Footprint. The market for such products has been declining, and
as a result of this decline, Mother Dairy Creating a National Footprint has been facing a
loss in the past 3 years. The market share for it is also less than 5%. The recommended
strategy for Mother Dairy Creating a National Footprint is to divest this strategic business
unit to minimise any further losses.
The artificially flavoured products strategic business unit is a dog in the BCG matrix for
Mother Dairy Creating a National Footprint. These products were launched recently, with
the prediction that this segment would grow. However, with increasing health
 consciousness, people are now refraining from consumption of artificial flavours. The
market is shrinking, and Mother Dairy Creating a National Footprint has LOGIN
no significant
market share. The recommended strategy for Mother Dairy Creating a National Footprint is
to call back this product.

Some of the strategic business units identified in the BCG matrix for Mother Dairy Creating a
National Footprint have the potential of changing from their current classification. For example, a
dog changing to a cash cow. These have been identified in the BCG matrix of Mother Dairy
Creating a National Footprint and recommended strategies to ensure such change have also
been made.

Buy Beauty & Health Supplem

| Sports Nutrition | Healthy

Nutrition Products
Ad Nykaa Wellness

Shop Now

VRIO Framework
The VRIO Framework or VRIO analysis is a strategic management tool that is used to analyse a
firm’s internal strengths and resources. It helps identify which one of its internal strengths and
resources can be a source of sustained competitive advantage. The analysis is based on the
idea that a firm’s internal resources are a source of sustained competitive advantage if they are
valuable, rare, cannot be imitated by competition, and are organised to capture value for the
organisation. The VRIO analysis requires looking at a firm's resources based on these 4 factors.

Based on the analysis, each resource can either provide a sustained competitive advantage, has
a good competitive advantage, temporary competitive advantage, competitive parity or
competitive disadvantage. A sustained competitive advantage exists when a resource is
valuable, rare, non-imitable and organised. A good competitive advantage occurs if it is valuable,
rare, and non-imitable. A temporary competitive advantage exists if it is valuable and rare. A
competitive parity occurs if it is only valuable. Lastly, the resource is a competitive disadvantage
LOGIN
if it is neither of the 4. The analysis takes place in this order by first assessing whether a
resource is valuable, rare, imitable and organised.

References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
management, 17(1), 99-120.

Barney, J. (2002). Gaining and Sustaining Competitive Advantage, 2nd ed. Prentice Hall,
Upper Saddle River, NJ.

Cardeal, N., & Antonio, N. S. (2012). Valuable, rare, inimitable resources and organization
(VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to
competitive advantage?

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and
performance in the BCG matrix—A PIMS-based analysis of industrial product businesses.
Academy of Management Journal, 25(3), 510-531.

Jurevicius, O. (2013a). VRIO Framework. Retrieved from

https://www.strategicmanagementinsight.com/tools/vrio.html

Jurevicius, O. (2013b). BCG growth-share matrix. Retrieved from

https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html

Knott, P. J. (2015). Does VRIO help managers evaluate a firm’s resources? Management
Decision, 53(8), 1806-1822.

Seeger, J. A. (1984). Research note and communication. Reversing the images of BCG's
growth/share matrix. Strategic Management Journal, 5(1), 93-97.

Smith, M. (2002). Derrick's Ice–Cream Company: applying the BCG matrix in customer
profitability analysis. Accounting education, 11(4), 365-375.

Warning! This article is only an example and cannot be used for research or reference
purposes. If you need help with something similar, please submit your details here.
 LOGIN

9270 STUDENTS
Can't Be Wrong

2068223
Orders

4.9/5
Reviews

1144
PhD Experts

GET BEST GRADES

Order Now
 LOGIN

Calculate the Price

BCG Matrix and VRIO Framework for Mother Dairy Creating a National Footpri

Select Subject

Select Deadline

(Approx ~ 0.0 Page)

Number of Words
 Words Pages
LOGIN
Total Price $0

ORDER NOW

Be a great writer or hire a greater one!

Academic writing has no room for errors and mistakes. If you have BIG dreams to score
BIG, think out of the box and hire Case48 with BIG enough reputation.

hire us
now

HIRE US NOW
 LOGIN

Our Guarantees

Proof Proof of No Plagiarism

of
No
QualityQuality Assurance
Plagiarism
Assurance

Q f
 Qualified Writers
Qualified
Writers LOGIN

Data Data Security

Security

On On Time Delivery
Time
Delivery
24/7
24/7 Support
Support

Interesting
Fact

Interesting Fact
 Interesting Fact
Most recent surveys suggest that around 76 % students try professional academic writing
LOGIN
services at least once in their lifetime!

ORDER NOW

About Us
What is Case48?
How it Works?
Blog
Reviews
FAQs
Contact Us LOGIN
Email:
[email protected]
Whatsapp:
+44 7742 214669

Start Live Chat

Reviews
Based on 9270
verified
reviews

4.9

We Accept

2021 © case48.com. All rights reserved

Policies Terms & Conditions