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Submission Date: 10/10/2013 Submission Time:5pm

MARKET ENVIRONMEMT AND ANALYSIS

ASSIGNMENT-NUMBER 2

BCG MATRIX FOR TVS MOTORS

Submitted to

Dr. RITANJALI MAJHI,

NIT Warangal,

SCH! " #$N$%&NT'

Submitted by

(ous)i* C)ait)an+a'D 13-.15

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INTRODUCTION

This is a report on the BCG Matrix of TVS Motors.

Boston Cons!tin" Grop #BCG$ Matrix is a for %e!!e& 'atrix #a ( ) (

'atrix$ &e*e!ope& +, BCG- USA. It is the 'ost renone& %orporateportfo!io ana!,sis too!. It pro*i&es a "raphi% representation for an

or"ani/ation to exa'ine &i0erent +sinesses in it1s portfo!io on the +asis

of their re!ate& 'ar2et share an& in&str, "roth rates. It is a to

&i'ensiona! ana!,sis on 'ana"e'ent of SBU1s #Strate"i% Bsiness Units$.

In other or&s- it is a %o'parati*e ana!,sis of +siness potentia! an& the

e*a!ation of en*iron'ent.

A%%or&in" to this 'atrix- +siness %o!& +e %!assi3e& as hi"h or !o

a%%or&in" to their in&str, "roth rate an& re!ati*e 'ar2et share.

Re!ati*e Mar2et Share 4 SBU Sa!es this ,ear !ea&in" %o'petitors sa!es this

,ear.

Mar2et Groth Rate 4 In&str, sa!es this ,ear 5 In&str, Sa!es !ast ,ear.

The ana!,sis re6ires that +oth 'easres +e %a!%!ate& for ea%h SBU. The

&i'ension of +siness stren"th- re!ati*e 'ar2et share- i!! 'easre

%o'parati*e a&*anta"e in&i%ate& +, 'ar2et &o'inan%e. The 2e, theor,

n&er!,in" this is existen%e of an experien%e %r*e an& that 'ar2et share

is a%hie*e& &e to o*era!! %ost !ea&ership.

BCG 'atrix has for %e!!s- ith the hori/onta! axis representin" re!ati*e

'ar2et share an& the *erti%a! axis &enotin" 'ar2et "roth rate. The 'i&5

point of re!ati*e 'ar2et share is set at 7.8. if a!! the SBU1s are in sa'e

in&str,- the a*era"e "roth rate of the in&str, is se&. 9hi!e- if a!! the

SBU1s are !o%ate& in &i0erent in&stries- then the 'i&5point is set at the

"roth rate for the e%ono',.

Resor%es are a!!o%ate& to the +siness nits a%%or&in" to their sitation

on the "ri&. The for %e!!s of this 'atrix ha*e +een %a!!e& as stars- %ash%os- 6estion 'ar2s an& &o"s. :a%h of these %e!!s represents a parti%!ar

t,pe of +siness.

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Stars5 Stars represent +siness nits ha*in" !ar"e 'ar2et share in a fast

"roin" in&str,. The, 'a, "enerate %ash +t +e%ase of fast "roin"

'ar2et- stars re6ire h"e in*est'ents to 'aintain their !ea&. Net %ash

;o is sa!!, 'o&est. SBU1s !o%ate& in this %e!! are attra%ti*e as the, are

!o%ate& in a ro+st in&str, an& these +siness nits are hi"h!,

%o'petiti*e in the in&str,. If s%%essf!- a star i!! +e%o'e a %ash %o

hen the in&str, 'atres.

Cash Cos5 Cash Cos represents +siness nits ha*in" a !ar"e 'ar2et

share in a 'atre- s!o "roin" in&str,. Cash %os re6ire !itt!ein*est'ent an& "enerate %ash that %an +e ti!i/e& for in*est'ent in other

+siness nits. These SBU1s are the %orporation1s 2e, sor%e of %ash- an&

are spe%i3%a!!, the %ore +siness. The, are the +ase of an or"ani/ation.

These +sinesses sa!!, fo!!o sta+i!it, strate"ies. 9hen %ash %os !ose

their appea! an& 'o*e toar&s &eterioration- then a retren%h'ent po!i%,

'a, +e prse&.

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Do"s5 Do"s represent +sinesses ha*in" ea2 'ar2et shares in !o5

"roth 'ar2ets. The, neither "enerate %ash nor re6ire h"e a'ont of

%ash. De to !o 'ar2et share- these +siness nits fa%e %ost

&isa&*anta"es. Genera!!, retren%h'ent strate"ies are a&opte& +e%ase

these 3r's %an "ain 'ar2et share on!, at the expense of%o'petitor1s=ri*a! 3r's. These +siness 3r's ha*e ea2 'ar2et share

+e%ase of hi"h %osts- poor 6a!it,- ine0e%ti*e 'ar2etin"- et%. Un!ess a

&o" has so'e other strate"i% ai'- it sho!& +e !i6i&ate& if there is feer

prospe%ts for it to "ain 'ar2et share. N'+er of &o"s sho!& +e a*oi&e&

an& 'ini'i/e& in an or"ani/ation.

TVS MOTORS

TVS Motor Co'pan, 55 a 'e'+er of the TVS "rop is the !ar"est %o'pan,of the "rop in ter's of si/e an& trno*er. The TVS "rop has a!a,s+een inspire& +, a %entr,5!on" 'ission an& *ision of its on &estin,.It is not >st a +siness +t a a, of &oin" +siness- hi%h sets TVSapart fro' others. TVS Motor Co'pan, is the thir& !ar"est to5hee!er 'anfa%trer in In&ia an& one a'on" the top ten in theor!&- ith anna! trno*er of 'ore than ?7 +i!!ion in (88@5(88. It isthe ;a"ship %o'pan, of the ? +i!!ion TVS Grop. The %o'pan, hasfor p!ants !o%ate& at Hosr an& M,sore in soth In&ia- in Hi'a%ha!ra&esh- North In&ia an& one in In&onesia. The %o'pan, has apro&%tion %apa%it, of (. 'i!!ion nits a ,ear. TVS MotorEs stren"th!ies in &esi"n an& &e*e!op'ent of ne pro&%ts 55 the !atest !an%h ofse*en pro&%ts on the sa'e &a, seen as a 3rst in ato'oti*e histor,.

TVS &e!i*ers tota! %sto'er satisfa%tion +, anti%ipatin" the%sto'erEs nee& an& presentin" 6a!it, *ehi%!es at the ri"ht ti'e an&at the ri"ht pri%e. The %sto'er an& his e*er %han"in" nee& is its%ontinos sor%e of inspiration.

TVS BCG Groth Share Matrix:The BCG Groth5Share Matrix is a p!annin" 'o&e! in hi%h +siness is&i*i&e& into for 'a>or +ase& on 'ar2et "roth an& 'ar2et share. The

"roth share in this ta+!e positions the to 'a>or thin"s of pro3ta+i!it,.Star

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#S%ooter$or %ontri+tion to the 'ar2et share+e%ase 'ope& ha*e 'ore a&*anta"es !i2e !o %ost hen %o'pare& toother 'ope& 'anfa%trin" %o'pan,. Han&!in" is *er, si'p!e an& this is'ore preferre& +, s'a!! tra&ers. Teena"ers are sin" this *ehi%!e as anentr, point for the'. This &o'inates in the position of %ash %o +e%ase

in%rease in the "roth of sa!es in e*er, ,ear.

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Do" &enotes !o 'ar2et "roth as e!! as !o 'ar2et share in thein&str,. In this se"'ent- the 'otor%,%!e is &i*i&e& into three %ate"oriesas e%ono', se"'ent hi%h ha& in%rease in ( hen %o'pare& to !ast,ear. In exe%ti*e se"'ent- &e%rease in 7 hen %o'pare& to !ast ,ear.Bt in pre'i' se"'ent- there is no in%re'ent or &e%re'ent hen

%o'pare& to !ast ,ear. Mar2et share %a'e &on hen %o'pare& to !ast,ear- so this is the 'ain reason that 'otor%,%!e %o'es n&er the %ate"or,of &o".

TVS BCG Matrix:

STARSTVS Apa%he RTR 78TVS Apa%he RTR 7@8

QUESTION MARKS

TVS 2in"

COWSTVS KL sper

DOGSTVS S%oot, pepTVS S%oot, strea2

Con%!sion

Ths e %an see that Ba>a> Ato is fo!!oin" appropriate strate"ies for the&i0erent pro&%t portfo!io.or stars the, +i!& %apa%it, expansion- in%rease in*est'ent- in%reasea&*ertise'ent an& pro'otion an& in%rease 'ar2et resear%h.or

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R::R:NC:S

httpF==.s!i&eshare.net="ari'a,a&a*=%ons'er5+eha*ior57((7(

httpF==.2essa,s.%o'=essa,s='ar2etin"=t*s5'otor5%o'pan,5in5in&ia5

'ar2etin"5essa,.php

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BCG MATRIK

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STARS!sar 78%% DTSi!sar 7@8%% DTSi

QUESTION MARKSKCD 7(%% DTSiDis%o*er!sar (88%% DTSi!sar ((8%% DTSi

B!a&eCOWS!atina CT 788Ba>a> Ato hee!er

DOGSA*en"errista!

Con%!sionThs e %an see that Ba>a> Ato is fo!!oin" appropriate strate"ies for the&i0erent pro&%t portfo!io.or stars the, +i!& %apa%it, expansion- in%rease in*est'ent- in%reasea&*ertise'ent an& pro'otion an& in%rease 'ar2et resear%h.or a>P%orporate.asp

http://www.scribd.com/doc/40339096/BCG-MATRIX-FOR-BAJAJ-AUTOhttp://www.managementstudyguide.com/bcg-matrix.htmhttp://www.bajajauto.com/bajaj_corporate.asphttp://www.scribd.com/doc/40339096/BCG-MATRIX-FOR-BAJAJ-AUTOhttp://www.managementstudyguide.com/bcg-matrix.htmhttp://www.bajajauto.com/bajaj_corporate.asp