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Thijs, Netherlands
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Example BCG Matrix: Coca Cola & Pepsi Cola
The matrix is misrepresenting in some cases. Example: Coca Cola and Pepsi. Coca Cola is market leader, as a result of which the relative market share of Pepsi is always smaller than 1.
When the relative market share is smaller than 1, you will be at the right-hand side of the matrix. In that case, Pepsi will automatically be a Question Mark or a Dog.
Everyone understands that Pepsi is a Cash Cow!
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Henri Zalamea, New Zealand
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Number of Competitors If you're going to do a BCG matrix, be sure to list more than two competitors. As in your example, Pepsi will definitely not be a "dog" if you'll just include more participants in your grid. Personally, a "question mark" product is the one who gets the second largest budget (behind the star product) and is the closest thing to become a star in the future, given the right promotion, rather than a cash cow product, given a few more years, will start its decline towards the dog quadrant. Just my perception. Cheers!
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JoeCal, USA
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Do Not Compare Entire Companies using BCG Matrix You are misinterpreting the matrix. It should not be used to make judgements about an entire company, but instead specific products or offerings. Coke isn't market leader for every product and not every Pepsi product is a star.
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Tim, NL
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BCG Matrix Coca Cola and Pepsi Thijs, your approach might be a bit digital. It does not need to be either high OR low. Pepsi's market share still can be considered high even though not they are not the marketleader.
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Ifan Hikmawan Putra, Indonesia
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coca cola and pepsi Pepsi and coca cola is like a mandatory fight, but what if coca cola and pepsi do merger, The BCG is not useless anymore, but as long as pepsi and coca cola still become a superstar in food and beverage industry , the BCG still needeed, we measure from all prespective, market share and business growth are looked from the marketing side, one thing we must considered , is the BCG important to measure 2 or more competitor in food and beverage industry. thanks for all discussion
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So, India
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Coca Cola and Pepsi not in one BCG Matrix The BCG matrix is essentially usable only for Strategic Business Units (SBU's) of ONE organisation. It cannot be used to compare brands of different organisations. There is a difference between products/brands and SBU's. So, BCG matrix if applied to any company's SBU's works perfect.
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George, Kenya
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Pepsi versus Coca-cola is Wrong Use of BCG Matrix @So: I agree BCG is used to analyse product lines or SBU's of one company for market growth and market share. It is done as an internal analysis tool to build a competitive strategy based on the market and the market position of these SBUs.
Therefore the comparison of Coca-cola and Pepsi should not be made using BCG Matrix.
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Nitish, India
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Separate BCG Matrix for Coca-cola Inc. from BCG Matrix for Pepsi Inc. Indeed the BCG Matrix is used to analyse SBUs. You can not use it to study two different organisations.
For example, you can take Pepsi Inc. and within that organization do a portfolio analysis, analyzing and comparing different products like Pepsi Product Line A with Pepsi Product Line B and with Pepsi Product Line C.
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Radha Raj
India
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The Role of Competition in the BCG Matrix It stands to logic that BCG Matrix is used to analyze the strengths and weaknesses of various strategic business units within one organization.
While doing just that, part of such analysis is to look at the Relative Market Positions (Market Share) of its SBUs (product lines) and that includes analysis of the competition.
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Radha Raj
India
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Comparison of Coco Cola & Pepsi on BCG Matrix I agree the BCG matrix is to be used by organizations to review the market performance of their products and brands so as to take appropriate decisions.
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