Developing a Strategy for ELIVISA Company using BCG Matrix

This report discusses the development of a strategy for ELIVISA Company using BCG Matrix. The report categorizes the products into four quadrants based on the characteristics of the product’s market. The report suggests that ELIVISA should continue the production of commodities falling under the stars and cash cow categories. On the other hand, ELIVISA should retire the dog category products and consider increasing the investment in the question mark category before retiring.

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Abstract
The report focusses on the development of a strategy at ELIVISA Company. The strategy
development will adopt the BCG matrix. The BCG matrix categorises the products into four
quadrants based on the characteristics of the product’s market. The BCG matrix quadrants
include the stars, cash cows, question marks and the dogs.
ELIVISA Company should aim at continuing the production of commodities falling under the
stars and cash cow categories. On the other hand, ELIVISA should retire the dog category
products and consider increasing the investment in the question mark category before retiring.

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Table of Contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................4
The BCG matrix...........................................................................................................................................4
Cash cow products..................................................................................................................................4
The dog category.....................................................................................................................................5
The star products.....................................................................................................................................5
The question mark category.....................................................................................................................5
BCG Diagram.............................................................................................................................................6
Conclusion...................................................................................................................................................6
Bibliography................................................................................................................................................7

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Introduction
ELIVISA Company requires to develop a strategy for the various products offered in the market.
ELIVISA deals with products such as absinthe, rum, vodka, gin, anis, energy drinks, whiskey,
Armagnac, brandy, tequila and cocktails. The products have different performances in the market
and enjoy varied market shares and growth rates. Some of the products have a high market share
with a high growth rate while other products have a high market share with a low growth rate.
On the other hand, some of the products have a low market share with high market growth while
some products have a low market share with a high growth rate. ELIVISA Company intends to
use the BCG matrix model, which categorises the products based on the nature of the product’s
market (Juneja, 2018). The model categorises the products in four categories as stars, dog,
question marks and cash cows.
The BCG matrix
The BCG matrix adopted by ELIVISA aims at ensuring that the products get priority based on
the market performance. The BCG matrix categorises the products in four quadrants namely the
cash cow, stars, question marks and dogs (Maloney, 2015).
Cash cow products
The cash cow products have a slightly growing market with a large size (Mandviwalla, 2015).
The products generate a lot of income for the company. Similarly, ELIVISA has cash cow
products such as rum, vodka, brandy and whisky. The products enjoy a large market share that
has a slight growth rate. Therefore, ELIVISA should ensure the cash cow products continue
generating revenue by ensuring maturity in the market (Mandviwalla, 2015).

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The dog category
The products in the dog category have a low market growth rate and a small market share
(Maloney, 2015). The products in the dog category at ELIVISA include absinthe, Armagnac and
tequila. The products have a market share of less than 5%, which indicates a very low size for the
products. Moreover, the growth rate is below 1% indicating a poor increase in market size.
ELIVISA should consider retiring the products from the market (Maloney, 2015).
The star products
The star products perform well in the market with a large market share in a highly growing
market (Olsen, 2018). The star products at ELIVISA include such as gin and anis. The products
have a market share of more than 5%, which is a large size while the growth rate is above 4%
indicating a high level of growth in the market. Therefore, ELIVISA should put more investment
to make to products market leaders (Olsen, 2018).
The question mark category
The products in the question mark category have a high market growth and a small market share
(Juneja, 2018). The products include cocktails and energy drinks. The products have a market
share of 1% each indicating a very small size. Moreover, the growth rate of the products is 3%
for cocktails and 6% for energy drinks. The numbers show that the products have a market with a
small market size with a low growth rate. Therefore, ELIVISA should either increase the
investment in the products or stop the production.

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BCG Diagram
MARKET GROWTH
HIGH
QUESTION MARKS
1. Cocktails
2. Energy drinks
STARS
1. Gin
2. Anis
DOGS
1. Absinthe
2. Armagnac
3. Tequila
CASH COWS
1. Rum
2. Vodka
3. Brandy
4. Whisky
LOW HIGH
MARKET SHARE
(Juneja, 2018)
Conclusion
ELIVISA Company should select to move on with the products in the stars and cash cow
categories. The cash cow products will generate funds to run and expand the business. On the
other hand, the star products require further investment to become market leaders. ELIVISA
should perform a cost-benefit analysis to enable decide whether to continue the question mark
products. Moreover, ELIVISA should retire the products in the dog category to mitigate losses.
Bibliography

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Juneja, 2018. Management Study Guide. [Online]
Available at: https://www.managementstudyguide.com
Maloney, J., 2015. Entrepreneur. [Online]
Available at: https://www.entrepreneur.com
Mandviwalla, M., 2015. Fox School of Business. [Online]
Available at: http://www.community.mis.temple.edu
Olsen, E., 2018. Strategic Implementation. [Online]
Available at: https://www.onstrategyhq.com