Bcg Matrix Of Microsoft Corporation

BCG matrix was a framework originally devised by Boston Consulting Group to strategically measure the potential growth rate of a company within its industry versus its relative market share. This is also known as the Growth Market Share matrix.By plotting these factors it is possible to identify which products (or brands/units) a company should invest further in, and which products it diversify away from.A BCG matrix will help develop a long-term strategic marketing plan to create more profitable products. Cash cow products deserve your attention. Cash cow brands (or products) are often well established, in constant demand, easy to produce and are therefore extremely profitable.As cash cow products do not require a lot of investment to maintain a high market share, every company should establish a cash cow to produce a reliable source of income.These cow products should be milked to produce cash. This can then be invested in 'star' products to help establish them as the market leader and to generate higher ROI.

The current strategies as pursued by Microsoft Corporation will be analyzed through the application of important tools such as BCG matrix and product lifecycle, and SWOT analysis to analyze the company’s strengths and weakness. BCG matrix was a framework originally devised by Boston Consulting Group to strategically measure the potential growth rate of a company within its industry versus its relative market share. This is also known as the Growth Market Share matrix.

Star products are market leaders which generate the highest ROI compared to any other products. However, they do need continual investment to maintain market leader status.Stars are big cash generators and cash users. They shine in high growth markets.

It is for this reason that companies should invest heavily in star products or brands.Successfully promoted star products will become cash cows. In the event that a star product is highly innovative, it may suffer from marketplace fluctuations ending up as a dog. Question products are the hardest ones to determine if they will be successful or not. They often have a low market share and consume lots of cash and investment resources.With high levels of investment behind them, they have the opportunity to become Stars.

Conversely, if they fail to gain traction in a fast high growth market, they will become dogs.Question mark products (brands/business units) can quickly become big loss makers and are often referred to as the 'problem child'. They need to be watched carefully. Dog products or brands have low growth and low market share. These are not worth further investment as they will put a drain on resources for little improvement in market share.Whilst 'Dogs' do not consume a lot of cash to produce or market, they also generate low returns. Meaning they can unnecessarily tie up time and cash with no long-term value.Unless these products complement or boost the performance of other products within a company's portfolio, then it is recommended to diversify away from 'dog' products. Devised as a portfolio planning tool, or corporate planning tool, the BCG growth-share matrix was first conceived by Bruce Henderson of the Boston Consulting Group back in the 1970's. The concept is based on four quadrants in which a company's strategic business units (SBU) or products/brands are classified.The quadrants are split into combinations of 'market growth' and 'market share', hence also being known as the growth-share matrix or growth-market-share matrix.

The matrix is scored from low to high on both the x-axis and y-axis. The x-axis generally denotes the market growth rate, or cash usage - with the y-axis denoting relative market share, or cash generation.Bruce Henderson reasoned that established and mature areas of a business where required to generate significant income (cash cows) which could then be invested into new highly profitable market leading products (stars).The underlying foundation of Bruce Henderson's model is that an increase in market share will result in an improvement in cash generation.

Equally, it assumes that to establish a product in a growing market will require continual investment to produce the goods/services and to increase capacity. This will undoubtedly consume cash.This is why the matrix highlights the level of cash consumption required versus the resulting cash generation. The BCG matrix is used in marketing strategies to identify where to invest marketing budgets.

It will help identify which products to promote to gain more market share. The matrix will highlight what products are considered dogs - therefore you should remove all marketing budget.The BCG matrix in marketing channel terms can identify what marketing platforms you can use to grow your business. Marketers will assign SEO, Google PPC, Social media, email, TV advertising to one of four quadrants to illustrate cash-generating channels versus cash usage.For please read our CEO's blog post. The BCG matrix can be used to visualise which marketing channels or platforms can help grow a company and the expected ROI per channel.There will be noticeable differences between B2B and B2C businesses and across industry sectors.For high growth and high returns, we always advise.

At the other end of the scale, we have not witnessed companies growing exponentially and achieving high ROI as a result of Twitter alone.When you are, you should consider the marketing matrix to help establish growth versus ROI.

Constructing a Strategy plan for Microsoft Corporation:As per the analysis concerns, Microsoft Corporation has not make any significant activity with the operating system of Microsoft within the sector of mobile device. Therefore, effective as well as innovative strategy needs to be acquired by this corporation. New innovative products should be taken by this company. Positive and huge participation of stakeholders is needed for this case. Diversified employees are the main source for doing this type of innovative as well as diversified products. Participation of diversified employees can be managed through informal participation of the stakeholders of various levels.On the other hand, Csaszar (2012) discussed about the informal interaction among the employees of this company. Informal communication and data sharing process can be very effective for interacting with the employees of the organization.

The structure of informal communication within the employees can be done in order to ensure positive participation of all levels of employees from the diversified group of employees. Process of informal communication can also be very effective for sharing the data and information within the employees of the organization. IIt can be able to deliver positive as well as effective objectives of organization.Therefore, the research and development wing of this organization needs to be considered by this corporation. The operating system for phone can be made with effective innovation and strategy. New mobile application development is very necessary for Those Corporation in order to achieve the objective of innovative product and technologically advanced product. The improvement over the windows system and mobile can be effective for the customers also.

It can attract the potential as well as loyal and new customers also. However, recently Microsoft Corporation has acquired a phone division of Nokia in order to sell more diversified products to the customers. The phone division of Nokia has seen a significant sell within the business activity of the company.

Lots of customers are attracted with this section of Nokia. Therefore, Microsoft Corporation has taken this device for increasing their business activity within the competitive sector of the market. This acquisition strategy of Microsoft Corporation is an important activity. Therefore, the customers will definitely expect several new features from this new division of this phone. Conclusion:Microsoft Corporation should take effective strategies in order to newly introduce the phone segment to the competitive market within the customers.

This phone division is a windows phone. After this, Microsoft Corporation can also be able to make effective android phones. The most suitable strategic option for Microsoft Corporation is to make android phones for the customers as because this is the ever challenging as well as demanding market of contemporary era.

Constructing a Strategy plan for Microsoft Corporation:As per the analysis concerns, Microsoft Corporation has not make any significant activity with the operating system of Microsoft within the sector of mobile device. Therefore, effective as well as innovative strategy needs to be acquired by this corporation. New innovative products should be taken by this company. Positive and huge participation of stakeholders is needed for this case. Diversified employees are the main source for doing this type of innovative as well as diversified products. Participation of diversified employees can be managed through informal participation of the stakeholders of various levels.On the other hand, Csaszar (2012) discussed about the informal interaction among the employees of this company.

Informal communication and data sharing process can be very effective for interacting with the employees of the organization. The structure of informal communication within the employees can be done in order to ensure positive participation of all levels of employees from the diversified group of employees. Process of informal communication can also be very effective for sharing the data and information within the employees of the organization. IIt can be able to deliver positive as well as effective objectives of organization.Therefore, the research and development wing of this organization needs to be considered by this corporation.

The operating system for phone can be made with effective innovation and strategy. New mobile application development is very necessary for Those Corporation in order to achieve the objective of innovative product and technologically advanced product. The improvement over the windows system and mobile can be effective for the customers also. It can attract the potential as well as loyal and new customers also. However, recently Microsoft Corporation has acquired a phone division of Nokia in order to sell more diversified products to the customers. The phone division of Nokia has seen a significant sell within the business activity of the company.

Microsoft

Lots of customers are attracted with this section of Nokia. Therefore, Microsoft Corporation has taken this device for increasing their business activity within the competitive sector of the market. This acquisition strategy of Microsoft Corporation is an important activity. Therefore, the customers will definitely expect several new features from this new division of this phone. Conclusion:Microsoft Corporation should take effective strategies in order to newly introduce the phone segment to the competitive market within the customers. This phone division is a windows phone.

After this, Microsoft Corporation can also be able to make effective android phones. The most suitable strategic option for Microsoft Corporation is to make android phones for the customers as because this is the ever challenging as well as demanding market of contemporary era. Download:0 Pages:40. Course Code: PM302. University: University Of Plymouth.

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