MKT 305
In the growth-share matrix, the resources are allocated based on their situations in the matrix. Resource allocation is useful as it helps in maintaining the market share at all costs and grow the market share if possible (Choubey, 2015). The businesses are supposed to allocate resources on various business units and products. This acts as a business strength. Dealing with the resource allocation problem enables the company to invest in the business units that will make it successful. It gives the firm’s ability to get a considerable market share and experience curve advantages. It helps the businesses to get a good competitive advantage through a huge market share. It allows firms to align opportunities with their strengths and, as such, bring success to the business.
Coca Cola Company is one of the leading beverage brands with more than 500 brands on its portfolio. Cash cows represent the products with high market share with low growths. The brands that fall under this category are the Coke brand, which has a worldwide presence and Limca.
Stars represent the products with high market share and high growth. The brands that fall under this category are bottled water, which is Dasani and Kinley. This growth rate is due to the high demand for healthy drinks and low calories.
Question market represents an industry that is still growing, and the firm wants to make the most out of it. The future of the market remains uncertain, and therefore high investments in the industry remain a risky endeavor. The products in this segment can grow or turn into bad ventures. The products of Coca-Cola that are at this level are minute maid, sparkling water, honest teas, smart water.
Dogs describe the products deemed to grow, but they did not due to slow growth in them. Their ability not to deliver excellent results create massive loss to the organizations. Coke brand falls under this category because of its reducing demand which can be attributed to less requirement for carbonated drinks
Reference
Choubey, S. (2015, December). STRATEGIC PLANNING THROUGH BCG GROWTH SHARE MATRIX. Management Accountant;, 50(12), 60. Retrieved from https://search.proquest.com/docview/1752182966?accountid=151051