Zee Entertainment Enterprises Limited is the Indian company of mass media, owned by the Essel Group. Its headquarter is in Mumbai, and operates in print, television, film, internet, allied businesses, and mobile contents. Zee entertainment was founded in 1991 with the name Zee Telefilms, but later it was renamed and this entertainment and news units were spun-off among four divisions. The entertainment company is successfully operating more than 34 various television channels, Production Company, Siti Cable Company, record labels and other businesses. It is operating internationally, and several channels are available in Africa, U.S, UK, and Asia (Zee Entertainment, 2018). BCG matrix helps the company in evaluating the product strategic position or services, so that investment decisions could be taken wisely. It is necessary for the companies to use such tools and matrices. Here is the BCG matrix analysis of Zee Entertainments.
Cash Cows
These are the products which have the major market share and low growth level. This means it deals in high volume of sales and low level of cash is consume as it does not need to develop the market or expand in the market in terms if growth rate. The cash cow products need to be milked accurately and periodically, so that it will be beneficial for the company and maintain the position in the market. Zee television channels are the cash cow for the company, and is considered as the major source of revenue generator. The television programs of the channel are widely popular (Gunnam, 2017).
Stars
This quadrant owns the high market share and high market growth, which means they generate the large sum of cash. They are considered as the market leaders and hence need investment to grow more in the industry. Stars needs to have balanced cash flow so that it could not turn into question mark. However, if in any case, attempts are required for holding the share, the reward could be cash cow. It doesn’t decline its sales and needs to improve the positions. Zee music is the star item for Zee entertainment limited, because of active response to the demands of consumers (Kabra, 2008).
Question Marks
This quadrant possess the potential to grow the sales in the market as it has low market share but high market growth rate. The potential needs to be identified and work on it properly by investing heavy sum of money so that it could turn into cash cow or star item rather than dog or the burden for the company. Different strategies are needed to be identified and implemented properly to stop them from making loss. Zee Café is the question mark for the Zee entertainment because of the fact that trends are changing, and dish TV is not preferable by people as it was before. They prefer cable, and due to strong competition, Zee entertainment needs to be attentive in this segment (Kabra, 2008).
Dogs
This is the burden for the company, which means they have the low market share and also low growth level. It means if it’s not making profit then also not making loss. But if it makes loss it needs to be shut down so that the money could be used for further investment in other categories or expenses. This is mandatory as the continuous loss can affect the reputation of the company negatively. Zee sports channel is the dog for Zee entertainment, because it is newly entered in this field, and is facing tough competition, which require some time to get the stable position in the market (Menon, 2018).
References
Gunnam, 2017. Zee entertainment. [Online], Available at: https://www.slideshare.net/BharathiGunnam/zee-entertainment-enterprise, [Accessed on: 7th October, 2018].
Kabra, S. 2008. Zee Entertainment Limited. [Online], Available at: https://www.slideshare.net/supriyav/zee-entertainment-limited-presentation, [Accessed on: 7th October, 2018].
Menon, B. 2018. Zee to go heavy on film production. [Online], Available at: https://www.thehindubusinessline.com/companies/zee-to-go-heavy-on-film-production/article9056242.ece, [Accessed on: 7th October, 2018].
Zee entertainment, 2018. About Us. [Online], Available at: https://www.zeeentertainment.com/, [Accessed on: 7th October, 2018].