Aditya Birla Groups is the multinational conglomerate of India, and the headquarter is located in Mumbai, India. The company operates in thirty five countries and employs over 120,000 people across the globe. The Aditya Birla Group has the interest in different sectors and fields like viscose fiber, cement, metals, viscose filament yarn, carbon-black, branded apparel, chemicals, financial services, BPO, telecom, IT services and fertilizers. It is the largest cement producer in India. The Group has the revenue of more than $44.3 billion in 2018. It is consider as third biggest conglomerate in private sector of India behind the Tata Group. Aditya Birla Group always work with the objective of expansion and profit, but provide best services and quality products to its customers. It make sure to satisfy the high demands of the customers, by working innovatively and dedicatedly. It has many effective strategies, and make sure all the products are working according to the target. The Group uses different matrixes and tools to evaluate the position of every business and products, to make decision related to investment or disinvestment. BCG matrix is effective for this purpose, as it helps in analyzing and evaluating the strategic position of the products (Aditya Birla Group, 2018). Here is the BCG matrix of the Aditya Birla Group;
Cash Cows
This product category is the main revenue genitor for the company because of its high market share, which means it sells more and hive high demands, but have low growth rate, which reflects on the low level of cash consumption from the company. The revenue earn by this category is mostly use for the reinvestment purpose in other quadrants or fields of the company. Birla Sun Life Insurance Company is the cash cow item of the Aditya Birla Group. The company must use Diversification and Intensive strategy, by the assistance of the intensive strategy, such as product and market development (Harshit, 2018).
Stars
These are products which have high market share and high market growth rate, which means they need investment because of growth, and also generate cash but less than the cash cow products. The company needs to focus on these items, so that they could be turn into cash cow rather than question mark. Ultra Tech cement is the star item for the Aditya Birla Group, because of the good positioning in the market. The company needs to use the defensive strategy due to current positioning. As it is the largest cement producer, it has the highest demand which can turn it into cash cow for the Group (St. Francis institute of management and research, 2014).
Question Marks
The products in this category have the high growth level, but low market share, because of which they need heavy investment to run its operations, as the market share is not enough to generate enough revenue for the category. This could be a burden for the company, and for reducing the burden, company should invest heavily to turn it into star. Idea Cellular Company is consider as the question mark for the company because of the growth, but due to many competitors like Vodafone, the market share is low (St. Francis institute of management and research, 2014).
Dogs
These are the items with low market growth and low market share. They are consider as the burden for the company, as they consume more cash than any other quadrant. Company should focus on this quadrant, and try hard to take the products out to question mark, so that it could be profitable for them. Grocery and retailing industry is in loss and consider as the dog for the company Aditya Birla Group. The Company was in loss, and so the Group was considering the company to how to turn it into question mark (Bureau, 2016).
References
Aditya Birla Group, 2018. Overview. [Online], Available at: http://www.adityabirla.com/about-us/overview, [Accessed on: 8th September, 2018].
Bureau, 2016. Aditya Birla Retail piles up Rs 5,320-crore loss. [Online]. Available at: https://economictimes.indiatimes.com/industry/services/retail/aditya-birla-retail-piles-up-rs-5320-crore-loss/articleshow/50813704.cms, [Accessed on: 8th September, 2018].
Harshit, 2018. Aditya Birla Group- BCG matrix. [Online], Available at: https://www.scribd.com/document/114606004/BCG-Matrix, [Accessed on: 8th September, 2018].
St. Francis institute of management and research, 2014. Aditya Birla Group, BCG matrix. [Online], Available at: https://www.slideshare.net/skdhake41/aditya-birla-bcg-matrix, [Accessed on: 8th September, 2018].
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