BCG of Harley Davidson, strategy ManagementFull description
BCG MatrixFull description
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A PROJECT REPORT ON "OPENING SAVINGS ACCOUNT BY MEETING CUSTOMERS" FOR HDFC BANK, PUNE PREPARED BY- RITWIK SINHA SURYADATTA INSTITUTE OF MANAGEMENT AND MASS COMMUNICATION PUNE-411043 BATCH-2007-2009
(ii) BCG MATRIX The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
HDFC Bank HDFC BANK stands at star position in BCG matrix. As HDFC bank have the high market growth and they also have high market share. There is a lot of growth potential for the banking industry because of increasing disposable income of customers, increasing working class, more volatility in other markets also increasing importance of savings and already discussed almost 30% of the market is still untapped. HDFC Insurances In insurance sector HDFC’s most of the products are in star position. HDFC insurance products have high market share and high growth rate. So we have lot of opportunity for investment. HDFC Mutual Funds Mutual fund stands at cash cow. This shows that HDFC high market share and low market
growth rate in mutual funds. This means we should only focus on profitable products and try to investment on those products which are low market growth rate but perform well if proper investment is theirs. Growth and margins Having the funds to grow is only half the problem. However, will the company actually grow? The sluggish rate of growth in the economy suggests that growth could indeed pose a problem. In fact, in the first quarter of the financial year-ended 2009, HDFC Bank was able to record only a 43 per cent growth in profits. This, however, may not be good enough to justify the valuation commanded by the stock. And if, due to the slowdown, the bank is forced to invest in government securities rather than in loans, which generate higher returns, the margins will be affected. On the other hand, competition from other banks may increase. Hence it can be concluded that HDFC BANK stands at cash cow in BCG matrix.
