BCG Matrix Adidas
BCG Matrix Adidas
BCG Matrix Adidas
The growth–share matrix (aka the product portfolio matrix , Boston Box , BCG-matrix , Boston
matrix, Boston Consulting Group analysis , portfolio diagram ) is a chart that was created by Bruce D.
Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business
units, that is, their product lines. This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management , strategic management , and portfolio analysis.
Cash Cows
These products have high market share but low market growth, which means they are generating the
profit through sales in the current market, but does not possess the potential of more growth and
expansion in the market. For Adidas, its clothing and apparels are the cash cow items, and it is
necessary for the Adidas to consider this point, and position itself well in customers mind by targeting
different geographic markets .
Stars
The products which have high market share and high level of market growth fall in this category.
Products are wisely categorized for this, as these items are mainly bringing the larger portion of profit
in the company, but it is necessary for the company to reinvest in this category, and try to bring more
innovations and creativity for retaining the position. For the Adidas group, Reebok and Adidas are the
stars, as both have the stronger market share; despite of the tough competition they are facing in the
fitness and sports industry, mainly its shoes. The competitors like Nike and Pume are also fighting for
the large portion of the market share, are the biggest fear of the Adidas Group .
Question Marks
The products categorize in this are with low market share but high market growth which means if
companies will pay more strategic attention to them, they might bring the large volume of sales for the
company, and generate more profit. Taylor made and Rockport are the question marks for Adidas, as
both have very low market shares but still possess the potential of growing more in the competitive
market. Adidas needs to revise its strategies for turning the potential into the benefits for the strategic
objective of the Group. In the product category, its Sports equipment are the question mark and it need
to pay attention to this domain .
Dogs
These are the items with low market share and market growth and mostly stand at the breakeven point.
Hats and sunglasses of Adidas are categorized in this because these are the less selling items of the
company and many people are not interested in spending their money in it, as they have better options
in this category. Adidas is not successful in beating the competition in this range, and still struggling
hard to survive in this category .