Boston matrix on BMW

comparative portfolio analysis By Becky, Lily and Owen

Boston Matrix
What is Boston Matrix?
- categorizing products as question marks, stars, cash cows

or dogs.
- examines if BMW has a balanced portfolio - interrelated with the product life cycle

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

BMW

- Entering China in 2000 - Setting factory in 2003 - BMWs current market in China is still relatively high

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

BMWs 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. (High market growth)This market segment targets at people who cannot afford sport cars

BMWs stars - 5 series

BMW 5 series (high market share) its new BMW 5 series is extremely successful, its market share growing from 15% to 28%. (high market growth) this market segment is the major segment of the Chinese luxury car industry.

BMWs 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,many chinese like suv

BMWS CASH COW - 3 SERIES

BMW 3 SERIES (HIGH MARKET SHARE) 23.4% MARKET SHARE IN 2009, VERY CLOSE TO ANOTHER MAIN COMPETITOR, BENZ. (LOW MARKET GROWTH) THE MARKET IS SATURATED

BMWS CASH COW- 7 SERIES

7 SERIES (High market share) BMW sold 26553 BMW 7 series in 2010 And China is BMW 7 Seriess second largest market. (low market growth) not many people in china can afford it, and people who can afford it would like to buy a better car such as Bentley. according to the porters generic strategy, BMW 7 Series is not in a good position.

BMWS DOG- 6 SERIES

BMW 6 Series BMW 6 has a low market share and a low market growth, its purpose is mainly to build brand image. Its competitors such as Porsche 911 and Benz AMG are much stronger than BMW 6.

BMWS PORTFOLIO
BMWs product portfolio is quite balanced currently. Although according to the boston matrix, it doesnt have any question mark products, its products are not situated in the same grid Some of BMW cars perform really well, while some cars perform quite poorly

IN ORDER FOR BMW TO OPTIMIZE FUTURE GROWTH AND PROFITS......

In 2010, BMW has generated more profits in China(168998 vehicles) than in any other countries. BMW can try to lower the price, in order to attract more customers. BMW is now introducing many new products, if its new products entered China earlier, it can help not only the sales

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