TOWS and BCG Matrix [PDF]

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TOWS Matrix



TOWS Matrix



SO Strategies • Strategies that enable competitive advantage, external opportunities match well with internal strengths, allows for competitive advantage to be built and maintained.



TOWS Matrix



ST Strategies • Mitigation Strategies, firm possesses internal strengths that facilitates neutralization of external threats, may lead to temporary advantage if competitors are impacted by environmental threats.



TOWS Matrix



WO Strategies • Acquisition/Development Strategies, situation where strategies are formulated to acquire or develop new resources/capabilities to take advantage of external opportunities.



TOWS Matrix



WT Strategies • Consolidation/Exit Strategies, if firms can’t find ways to convert weaknesses to strengths via acquisition/development, exit from market is recommended.



BCG MATRIX



BCG Model  The BCG matrix method is based on the product lifecycle



theory that can be used to determine what priorities should be given in the product portfolio of a business unit.  To ensure long-term value creation, a company should have a



portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.  It has 2 dimensions: 







market share market growth



 The basic idea behind it is that the bigger the market share a



product has or the faster the product's market grows the better it is for the company.



Growth-Share Matrix Developed by the Boston Consulting Group



HUL  India's



largest fast moving consumer goods company.  Hindustan Unilever's distribution covers over 1 million retail outlets across India directly.  Its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India.  It estimates that two out of three Indians use its many home and personal care products, food and beverages.



HUL PRODUCTS Personal wash: Lux, Lifebuoy, Liril ,Hamam, Breeze, Moti , Dove, Pears and Rexona Laundry: Surf ,Excel, sun light, Rin ,Wheel & Ala bleech Dishwasher : Vim Ice cream : Kwality walls Disinfectants:-



Foods: Kissan,Jam,Ketchup,Squashes,AnnapurnaAata and salt, Knorr Soups and Modern Bread Beauty Products: Fair &Lovely,Lakme, Ponds, Vaseline and Aviance Beverages:Tea: Brooke bond,Lipton, taj mahal Coffee: Brooke bond bru Water Purifier: Pureit



Hair-Care: Sunsilk naturals, Clinic , Dove and Lifebuoy Oral-Care: Pepsodent and Close-up Deo spray: Axe and Rexona Ayurvedic Personal & health care: Ayush



Star



G r o w t h r a t e



Lux Sunsilk Fair and Lovely Kissan Ponds Surf Excel Anna purna atta vim



Cash Cow



.



Question Mark Rin Pepsodent Domex Pureit Sun light



Dogs Axe Vaseline Bru 3roses Redlabel Closeup Pears



Wheel Modern Bread Breeze



Market share



Lux  Lux is a star for HUL.  Lux enjoys a market share of 16%.



 This industry has a high growth rate of 10%.  HUL comes with different variants in Lux quite



frequently in order to maintain their position.



Sunsilk  Sunsilk is a Star for HUL.  HUL holds 47.8% market share in the shampoo



industry.  Sunsilk has 32% market share. Like Lux,it also has



different variants.



Fair and Lovely



 The Rs 3,000-crore skincare market in India, where  HUL is the leader with an estimated 70 per



centmarket share,is having a rapid growth.



 Market share of Fair and lovely is around 60%.  Major competitors-Garnier,Fairglow,Emami,Nivea.  Star for HUL



Rin  The Rs13,000 crore Indian detergent market is the



largest segment in the consumer goods sector.



 Hul has 35% market share in detergent industry.  Rin has only 4.8% market share.  Rin is a Question Mark for HUL.  Major Competitor Tide.



Wheel



 Mainly for low based income.  Market share is falling.  Dog for HUL.



 Competitors are Nirma,Fena



Pepsodent  Market share is 13.81%  Question mark for HUL.



 HUL has a market share of 30% in the 5000 plus



croreoral care business.  Major Competitors-Colgate,Crest,Oralb,Dabur.



AXE



 Cash cow for HUL  Market share of 70%in 200 crore market.  Competitors Nike,Parkavenue.



Ponds



 Market share of 65% in 7 billion talcum powder



market .  Star for HUL.  Competitors are Johnson & Johnson ,Cinthol, Spinz.



Vaseline  Market share of 90%.  Cash Cow for HUL.



 Competitor Johnson & Johnson.



Domex  Market share is only 20 % .  Question mark for HUL.



 Major competitors-Harpic(70%),Savlon.



Kissan Ketchup  The ketchup market in India is estimated to be



around Rs 220 crore, largely dominated by Nestle Maggi that owns 47% of the market and the Kissan that owns26%.  Major competitors Heinz, Maggi.  Star for HUL



Surf Excel



 Has a market share of 37 % in 9000 croreMarket.  Star for HUL  Competitors Tide,Ariel.



Annapurna Atta  Market share of Annapurna Atta is 26% compared to



Aashirvad Atta of ITC(40%).  Star for HUL