Boston matrix on BMWcomparative portfolio analysis By Becky, Lily and Owen categorizing products as question marks.Boston Matrix What is Boston Matrix? • .interrelated with the product life cycle .examines if BMW has a balanced portfolio • . cash cows or dogs. • . stars. Stars: need heavy investment to sustain growth Question marks: have potential cash cows: successful products with relatively little need for investments dogs: rarely worth investing in . Entering China in 2000 .Setting factory in 2003 .BMW’s current market in China is still relatively high • • • • .BMW • . High market share Low market share High market growth STARS BMW 1 Series BMW 5 Series BMW X Series CASH COWS BMW 3 Series BMW 7 Series QUESTION MARKS Low market growth DOGS BMW 6 Series . (High market growth)This market segment targets at people who cannot afford sport cars .BMW’s Stars.1 series BMW 1 Series: (High market share)BMW entered this particular market segment earlier than its competitors such as Benz B series and Audi A3. 5 series BMW 5 series (high market share) its new BMW 5 series is extremely successful. its market share growing from 15% to 28%.BMW’s stars . . (high market growth) this market segment is the major segment of the Chinese luxury car industry. many chinese like suv .BMW’s stars.X series BMW X series: (high market share)mainly due to its brand loyalty and brand awareness (high market growth)according to a survey. (LOW MARKET GROWTH) THE MARKET IS SATURATED .BMW’S CASH COW .3 SERIES BMW 3 SERIES (HIGH MARKET SHARE) 23.4% MARKET SHARE IN 2009. BENZ. VERY CLOSE TO ANOTHER MAIN COMPETITOR. and people who can afford it would like to buy a better car such as Bentley.7 SERIES • • 7 SERIES (High market share) BMW sold 26553 BMW 7 series in 2010 And China is BMW 7 Series’s second largest market.BMW’S CASH COW. (low market growth) not many people in china can afford it. • . according to the porter’s generic strategy. BMW 7 Series is not in a good position. Its competitors such as Porsche 911 and Benz AMG are much stronger than BMW 6.BMW’S DOG. its purpose is mainly to build brand image. .6 SERIES BMW 6 Series BMW 6 has a low market share and a low market growth. while some cars perform quite poorly .BMW’S PORTFOLIO BMW’s product portfolio is quite balanced currently. it doesn’t have any question mark products. its products are not situated in the same grid Some of BMW cars perform really well. Although according to the boston matrix. . in order to attract more customers. In 2010. BMW has generated more profits in China(168998 vehicles) than in any other countries...IN ORDER FOR BMW TO OPTIMIZE FUTURE GROWTH AND PROFITS. BMW can try to lower the price... if its new products entered China earlier. BMW is now introducing many new products. it can help not only the sales . THANK YOU FOR LISTENING! .