BCG MATRIX

Case Study: Malaysia Mobile

Telecommunications

Presented for: Assoc. Prof. Dr. Zarina Salleh

Prepared by: Siti Nur Azzyati Saharuddin
INTRODUCTION______________________
Develop by Bruce Henderson of Boston
Consulting Group, 1960s.

Technique that classified business as low or
high performance based on their market
growth rate and relative market share.

Advantages of BCG Matrix:
1. Easy to plot
2. Catchy name for quadrants
(Star, Question Marks, Cash Cows, Dog)
BCG MATRIX
Axis in graph present:
1. Market/industry growth Y axis


2. Relative market share (RMS) X axis



Annual growth for market SBU operates

Market share compare to other
competitors
MARKET GROWTH RATE_____________
Normally used as a measure of markets
attractiveness.

Formula:

MGR =
Current Sales Last Year Sales
Last Year Sales
RELATIVE MARKET SHARE_________
Formula:

RMS =


Business Unit Sales this year
Leading rival Sales this year
B
C
G

M
A
T
R
I
X

MARKET
LEADERS IN
HIGH
GROWTH
MARKETS
NOT MARKET
LEADERS IN
HIGH
GROWTH
MARKETS
MARKET
LEADERS IN
LOW
GROWTH
MARKETS
NOT MARKET
LEADERS IN
LOW
GROWTH
MARKETS
Telecommunication industry has expand -
demand from the nations increase.
In Malaysia, telecommunication industry has
been consider prominent.
Increase in total subscribers from 27.1
million in 2008 to 42.9 million in 2013.
Telecommunication is under Ministry of
Energy, monitor by MTD (Malaysia
Telecommunication Department).
INTRODUCTION______________________
INDUSTRY
Main mobile industry:

COMPANY PROFILE_______________
Maxis
Founder of company is Mr. Ananda Krishan.
Operation started in 1995.
Leading telecommunications service provider.
Rank 1
st
in telecommunication industry with
total subscribers of 14.1 million (2013).
Maxis marketing strategy: high profile
celebrities such as Siti Nurhaliza, Akademi
Fantasia artists and others.
Celcom
Stated its operations as STM Cellular
Communications in 1988.
Oldest mobile telecommunications
company in Malaysia.
Rank 2
nd
in telecommunication industry by
12.03 millions subscribers (2013).
Celcom marketing strategy: Famous artist
as ambassador such as Maya Karin,
Fahrin Ahmad and others.
Digi
Started to operate in 24 May 1995.
3
rd
rank in Malaysia telecommunication
services provider.
Numbers of subscribers is 10.3 million
(2013).
Marketing strategy: Mascot, lower price of
services among others two main
providers, catchy advertising: I will follow
you songs.

According to Malaysia Forest Interactive, of different
telecommunication companies:

BCG MATRIX___________________________
MOBILE
TELECOMMUNICATION
Telco Market share (%) RMS Market growth
(%)
Maxis 32.83 1.17 -0.10
Celcom 28.00 0.85 6.18
Digi 24.00 0.73 10.75
TuneTalk 4.90 0.15 5
U-mobile 6.98 0.21 500
XOX Com 0.92 0.03 1.02
P1 1.22 0.04 72.79
RedTone Mobile 0.47 0.01 33.34
Merchantrade 0.69 0.02 200
Star



Question Marks

U-mobile
P1
Merchantrade
Cash Cow

Digi
Celcom
Maxis

Dog

RedTone Mobile
Tune Talk
XOX Com
BCG MATRIX___________________________
FIGURE
Relative Market Share (RMS)
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e

COMPANY PROFILE_________________
Started its operations in April 1992.
Subsidiaries of Majlis Agama Islam
Wilayah Persekutuan (MAIWP) and
Yayasan Wilayah Persekutuan (YWP).
Marketing strategies: Website, Education
booth, brochure and others.
INSTITUT
PROFESIONAL
BAITULMAL
According to Unit Kemasukkan Rekod Pelajar of
different courses in IPB:


BCG MATRIX___________________________
INSTITUT PROFESIONAL
BAITULMAL
Courses Market share (%) RMS Market growth
(%)
BM111
35.87 1.43 15.30
AC110
20.73 0.58 7.17
CS110
1.22 0.03 - 3.45
AC120
2.40 0.07 18.75
PD003
7.06 0.20 -4
LCCI
25.15 0.70 27.80
CAT
7.61 0.21 1.12
Star

LCCI
BM111
Question Marks

AC120
Cash Cow

AC110

Dog

CS110
PD003
CAT
BCG MATRIX___________________________
IPB
Relative Market Share (RMS)
M
a
r
k
e
t

G
r
o
w
t
h

R
a
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e

According to Alfa Gemilang, Account Department,
here are some sales data of products and
services:


BCG MATRIX___________________________
ALFA GEMILANG SDN
BHD
Product/Services Market share (%) RMS Market growth
(%)
Printing
76% 4.31 79.49
Stationeries
2% 0.03 - 10.00
Paper supply
18% 0.23 - 4.41
Design services
4% 0.06 - 20.00
Star
Printing
Question Marks


Cash Cow



Dog
Stationeries
Paper Supply
Design Services
BCG MATRIX___________________________
IPB
Relative Market Share (RMS)
M
a
r
k
e
t

G
r
o
w
t
h

R
a
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e