Huawei is an investment and holding company majorly dealing in the design, manufacture and marketing of smartphones, tablets, PCs, extra. Huawei also offers a wide range of services to other companies and consumers such as Internet of Things (IoT), cloud computing, among others. Huawei’s smartphone market is an oligopoly with both high end (Apple and Samsung) and low-end players. Huawei on the other hand is a low-end smartphone vender having an 11.4% market share with major competitors Samsung, Apple and Xiaomi having 22.6%, 15.1% and 8.2% market shares respectively according to smartphone shipments for the first quarter of 2018 (Statista 2018). The following BCG analysis demonstrates how market growth has affected the profitability of Huawei’s strategic business units depending on their respective market shares.
In this Virgin Atlantic BCG Matrix analysis, we look at the most profitable and least profitable route segments operated by Virgin Atlantic across its various global markets. Such segments, referred to as strategic business units (SBUs) are often run as business portfolios. For instance, Virgin Atlantic UK, Australia or Virgin Atlantic US are separate busines units or subsidiaries run as different portfolios under the Virgin Atlantic brand. This report uses a BCG analysis to help us idenfify and study such segments.
Lloyds bank is a British retail and commercial bank that offers financial services such as lending, investment, risk management, among others to individuals and business customers in the UK. It is one of the largest banks in UK having over 2000 branches that operate under Lloyds bank, bank of Scotland and Halifax brands. The UK’s banking industry market is a prominent oligopoly with four major players, Barclays, HSBC, Lloyds and Royal Bank of Scotland (RBS). Therefore, Lloyds bank faces competition from fellow banks such as Barclays, RBS, HSBC, among others and threat of substitutes such as fintech companies and prepaid debit cards that are affecting Lloyds bank profitability. By using the porters-five forces analysis, we determine the points at which Lloyds bank has been intensely affected by the competition while realizing different market opportunities and the BCG analysis shows how market growth has affected Lloyds business performance depending on their market share suggesting major investment points to facilitate growth and profitability of Lloyds bank.
The food and beverage industry market is a prominent oligopoly with three major players Nestle, Coca-Cola and Pepsi. Pepsi is one of world’s largest food and beverage companies with many subsidiaries such as Frito-Lay, Tropicana, Sabritas, Walkers, among others that manufacture various products such as water, fruit juice, potato chips, carbonated soft drinks, extra. PepsiCo faces competition in different markets such as the carbonated soft drink market, bottled water market, among others that has affected its growth in the food and beverage industry. The following analysis shows points or areas where competition from rivals such as Coca-Cola majorly affects Pepsi and shows how various factors like buyer and supplier bargaining power have affected its growth while highlighting major opportunities and threats. This report also examines Pepsico using a BCG matrix analysis.
Xiaomi has not been performing well since 2016, falling from top position in the Chinese smartphone market in 2015 to number 5 in 2017. Things are however beginning to look up for Xiaomi. The company’s market share picked up in the first quarter of 2018, rising to 13% from 8% in 2017. Using Porters five forces and BCG matrix or growth share analysis, this report looks at how the five competitive forces – buyer power, supplier power, threat of entry, threat of substitutes and rivalry between existing smartphone firms have shaped the structure of the Chinese smartphone industry. The report also uses the BCG/growth share matrix to look at some “cash” generators and “star” product categories Xiaomi can further invest in as well as possible “dogs” the company should divest as a way of rebranding and repositioning itself after a tumultuous 2016 and 2017 period.
HSBC Bank had a 5.9% return on equity in 2017 through its various businesses such as Retail Banking and Wealth Management, Global Personal Banking, Commercial Banking, Global Banking and Markets, among others. Using BCG Matrix analysis and Swot, this report identifies HSBC’s major strategic business units and portfolio of business resources that can help it mitigate arising threats (identified by Pestle analysis) and internal weaknesses (identified by Swot analysis) while taking advantage of new opportunity trends (Pestle) that are shaping the UK banking industry.
The Coca-Cola Company is an American based multinational corporation that is engaged in the manufacture, retailing and marketing of more than 500 non-alcoholic beverage brands including the iconic Coca Cola. Founded in 1892, the company is headquartered in Atlanta, Georgia overseeing a franchised business model where it makes the famed Coca Cola syrup concentrate which it then sells to more than 300 bottling partners located around the world. Revenue for the year ended 31st December 2018 was US$31.85 billion, compared to US$41.863billion in 2016.
This report examines Coca Cola and the soft drinks industry using Porters Five Forces model, followed by a BCG matrix analysis to find out the various strategic business units in Coca Cola's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Considering the US footwear market, Nike accounts for 21.1% market share with major competitor adidas having 4.7% according to Statista (Statista 2018d). Using BCG we identify Nike's raid growth in the market.
Apple is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market has become highly fragmented into high-end and low-end players. Apple being a high-end market player faces competition primarily from Samsung. In 2018, Apples share of the global smartphone industry had fallen to third, behind Huawei and leader Samsung. It is the first time Apple is not in the top 2 global smartphone firms in the world since 2011. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals.
Using a pestle analysis for Apple, this report examines how various external factors have impacted the growth potential and performance of Apple. The analysis includes the effect of US tax cuts, and how escalating US-China trade tensions are likely to affect its future revenues and performance.
In addition, the report looks at how developments in technology and demographics can favor further growth of Apple. Using Swot and BCG Matrix analysis, the report identifies Apple’s major strengths and weaknesses and strategies the Cupertino based tech giant can use to exploit emerging opportunities such as demand for smaller wearable devices, while mitigating threats and minimizing weaknesses.
Using Porters five forces, the report examines how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low cost rivals.
China Mobile is an investment holding company engaged in telecommunications and related businesses such as mobile businesses which offer voice, roaming and data services, wireline broadline businesses and Internet of Things. China’s telecom market is a prominent oligopoly with China Mobile accounting for over 80% of all net profit in China’s telecom market (Yoo 2017) China Mobile has over 887million customers (Statista 2018) with competitors China Unicom and China Telecom having 284.16million and 249.96million customers respectively. It accounts for 70% of China’s telecom market. Various external factors have hindered the growth of China Mobile and by using a pestle analysis, we realize how the political factors like Trump’s order to block China Mobile from operating in the US affects its profitability, the effect of unemployment on China Mobile. In addition, we look at how developments in technology and demographics like increase of consumers using smartphones can favor further growth of China Mobile. Using the swot analysis, we identify China Mobile’s major strength and weaknesses that can be improved upon.