BCG a high market share and high

BCG MATRIX

RELATIVE MARKET SHARE

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                                     HIGH                                                                            
LOW

STARS

  ?
QUESTION
MARKS

CASH
COWS

               
                                  DOGS

 

BCG Matrix defines
basically the product portfolio of a business. It helps in strategic planning
in a long term on the basis of market growth and market share. In case of
Indian Oil Corporation Ltd., its products can be classified as follows:

·      DOGS: Lubricants,
Explosives and Superior Kerosene Oil

Lubricants and
Explosives are considered as dogs as they have the lowest market share as
Explosives are only manufactured in small quantities in Assam Refinery and
Lubricants face a huge head down due to Bharat Petroleum’s and Castrol’s Domination
in this area. Whereas in case of Superior Kerosene oil it has lost its growth
and market share due the LPG scheme launched by the Prime Minister to promote
LPG. It is advised to the company to make turn around plans and not to invest
further in case these products do not generate sufficient returns.

·      QUESTION MARKS: Aviation Turbine Fuel and Bitumen

As the name
suggests aviation turbines fuel is utilised by the Airline Industry though the
demand is high but as such there is no significant growth in the market share.
Similarly, bitumen is utilised in making roads and is a biproduct of every
petrochemical industry hence a low growth is there in terms of revenue. It is
advised to the company to further invest nothing and generate whatever cash it
can from these products.

·      CASH COWS: Petrol

Power is the need
of today’s era and petrol is one such common source though has a huge market
share and is generating sufficient revenues, it is observed that it has a lower
growth rate due the fluctuating international crude prices and government’s say
in fixing the prices. Hence, it is the foundation of the company as it’s giving
huge profits, but due to low growth less investment is required.

·      STARS: LPG
and Diesel

These are the
products they have a high market share and high growth rate. For LPG, this is
due to promotion of LPG in the rural areas and increase in crude prices, Indane
by IOCL is the largest chain of LPG provider hence benefits, it was even
reported that India,s LPG demand is even more than China. As for diesel, it is
used in two wheelers, four wheelers, trucks and even industries , henceforth
fully capturing the market, for having the largest production unit of diesel in
India. It is advised to the company to hold this share and attempts should be
made in keeping it even by utilising the proceeds from cash cows.

 

 BCG MATRIX

RELATIVE MARKET SHARE

 

                                     HIGH                                                                            
LOW

STARS

  ?
QUESTION
MARKS

CASH
COWS

               
                                  DOGS

 

BCG Matrix defines
basically the product portfolio of a business. It helps in strategic planning
in a long term on the basis of market growth and market share. In case of
Indian Oil Corporation Ltd., its products can be classified as follows:

·      DOGS: Lubricants,
Explosives and Superior Kerosene Oil

Lubricants and
Explosives are considered as dogs as they have the lowest market share as
Explosives are only manufactured in small quantities in Assam Refinery and
Lubricants face a huge head down due to Bharat Petroleum’s and Castrol’s Domination
in this area. Whereas in case of Superior Kerosene oil it has lost its growth
and market share due the LPG scheme launched by the Prime Minister to promote
LPG. It is advised to the company to make turn around plans and not to invest
further in case these products do not generate sufficient returns.

·      QUESTION MARKS: Aviation Turbine Fuel and Bitumen

As the name
suggests aviation turbines fuel is utilised by the Airline Industry though the
demand is high but as such there is no significant growth in the market share.
Similarly, bitumen is utilised in making roads and is a biproduct of every
petrochemical industry hence a low growth is there in terms of revenue. It is
advised to the company to further invest nothing and generate whatever cash it
can from these products.

·      CASH COWS: Petrol

Power is the need
of today’s era and petrol is one such common source though has a huge market
share and is generating sufficient revenues, it is observed that it has a lower
growth rate due the fluctuating international crude prices and government’s say
in fixing the prices. Hence, it is the foundation of the company as it’s giving
huge profits, but due to low growth less investment is required.

·      STARS: LPG
and Diesel

These are the
products they have a high market share and high growth rate. For LPG, this is
due to prBCG MATRIX

RELATIVE MARKET SHARE

 

                                     HIGH                                                                            
LOW

STARS

  ?
QUESTION
MARKS

CASH
COWS

               
                                  DOGS

 

BCG Matrix defines
basically the product portfolio of a business. It helps in strategic planning
in a long term on the basis of market growth and market share. In case of
Indian Oil Corporation Ltd., its products can be classified as follows:

·      DOGS: Lubricants,
Explosives and Superior Kerosene Oil

Lubricants and
Explosives are considered as dogs as they have the lowest market share as
Explosives are only manufactured in small quantities in Assam Refinery and
Lubricants face a huge head down due to Bharat Petroleum’s and Castrol’s Domination
in this area. Whereas in case of Superior Kerosene oil it has lost its growth
and market share due the LPG scheme launched by the Prime Minister to promote
LPG. It is advised to the company to make turn around plans and not to invest
further in case these products do not generate sufficient returns.

·      QUESTION MARKS: Aviation Turbine Fuel and Bitumen

As the name
suggests aviation turbines fuel is utilised by the Airline Industry though the
demand is high but as such there is no significant growth in the market share.
Similarly, bitumen is utilised in making roads and is a biproduct of every
petrochemical industry hence a low growth is there in terms of revenue. It is
advised to the company to further invest nothing and generate whatever cash it
can from these products.

·      CASH COWS: Petrol

Power is the need
of today’s era and petrol is one such common source though has a huge market
share and is generating sufficient revenues, it is observed that it has a lower
growth rate due the fluctuating international crude prices and government’s say
in fixing the prices. Hence, it is the foundation of the company as it’s giving
huge profits, but due to low growth less investment is required.

·      STARS: LPG
and Diesel

These are the
products they have a high market share and high growth rate. For LPG, this is
due to promotion of LPG in the rural areas and increase in crude prices, Indane
by IOCL is the largest chain of LPG provider hence benefits, it was even
reported that India,s LPG demand is even more than China. As for diesel, it is
used in two wheelers, four wheelers, trucks and even industries , henceforth
fully capturing the market, for having the largest production unit of diesel in
India. It is advised to the company to hold this share and attempts should be
made in keeping it even by utilising the proceeds from cash cows.

 

 BCG MATRIX

RELATIVE MARKET SHARE

 

                                     HIGH                                                                            
LOW

STARS

  ?
QUESTION
MARKS

CASH
COWS

               
                                  DOGS

 

BCG Matrix defines
basically the product portfolio of a business. It helps in strategic planning
in a long term on the basis of market growth and market share. In case of
Indian Oil Corporation Ltd., its products can be classified as follows:

·      DOGS: Lubricants,
Explosives and Superior Kerosene Oil

Lubricants and
Explosives are considered as dogs as they have the lowest market share as
Explosives are only manufactured in small quantities in Assam Refinery and
Lubricants face a huge head down due to Bharat Petroleum’s and Castrol’s Domination
in this area. Whereas in case of Superior Kerosene oil it has lost its growth
and market share due the LPG scheme launched by the Prime Minister to promote
LPG. It is advised to the company to make turn around plans and not to invest
further in case these products do not generate sufficient returns.

·      QUESTION MARKS: Aviation Turbine Fuel and Bitumen

As the name
suggests aviation turbines fuel is utilised by the Airline Industry though the
demand is high but as such there is no significant growth in the market share.
Similarly, bitumen is utilised in making roads and is a biproduct of every
petrochemical industry hence a low growth is there in terms of revenue. It is
advised to the company to further invest nothing and generate whatever cash it
can from these products.

·      CASH COWS: Petrol

Power is the need
of today’s era and petrol is one such common source though has a huge market
share and is generating sufficient revenues, it is observed that it has a lower
growth rate due the fluctuating international crude prices and government’s say
in fixing the prices. Hence, it is the foundation of the company as it’s giving
huge profits, but due to low growth less investment is required.

·      STARS: LPG
and Diesel

These are the
products they have a high market share and high growth rate. For LPG, this is
due to promotion of LPG in the rural areas and increase in crude prices, Indane
by IOCL is the largest chain of LPG provider hence benefits, it was even
reported that India,s LPG demand is even more than China. As for diesel, it is
used in two wheelers, four wheelers, trucks and even industries , henceforth
fully capturing the market, for having the largest production unit of diesel in
India. It is advised to the company to hold this share and attempts should be
made in keeping it even by utilising the proceeds from cash cows.

 

 omotion of LPG in the rural areas and increase in crude prices, Indane
by IOCL is the largest chain of LPG provider hence benefits, it was even
reported that India,s LPG demand is even more than China. As for diesel, it is
used in two wheelers, four wheelers, trucks and even industries , henceforth
fully capturing the market, for having the largest production unit of diesel in
India. It is advised to the company to hold this share and attempts should be
made in keeping it even by utilising the proceeds from cash cows.