Royal Bank of Scotland is a UK based banking and financial services provider with operations in UK and Ireland where it operates as Ulster Bank. In England, it operates as the NatWest brand while in Scotland, it is still RBS where it has been serving Scottish customers since 1727. RBS has operations in a diverse set of consumer and wholesale businesses including retail, credit cards and mortgages (operating as RBS, NatWest & Ulster), wealth management (operating as Coutts), commercial and corporate lending (operating as Lombard, Adam & Co. etc). It is part of the UK "Big Four" banks, referring to the highly oligopolistic nature of the biggest four banks which are; Lloyds Banking Group, Barclays, RBS and HSBC bank. These control a combined market share of 77.17% for current accounts in the UK’s banking industry, or seven in 10 current accounts in the UK are registered to one of the Big Four. In this case study analysis, we analyse the various strategic business units in RBS'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.
This report uses the BCG matrix to analyse BA’s key routes, identifying the stars, cash cows, question marks and dog routes. The growth/share matrix also commonly known as the BCG Matrix is a strategic business tool developed by the Boston Consulting Group (BCG) to aid organizations in identifying and allocating resources in a portfolio of brands or business units. This is important because in a competitive market such as the UK airlines industry, a firm such as British Airways needs to determine which segments (in this case routes) are profitable and bring in a lot of cash even in a mature market to be used to fund routes with a high potential for growth yet have a low market share.
Barclays Barclays is a British bank with operations in more than 50 countries including the US, Japan, India, Europe and many African countries. It is part of the UK big four, referring to the four largest UK-based banking groups which also include HSBC, Lloyds and RBS. Founded in 1690 by James Barclay, Barclays has operations in a diverse set of consumer and wholesale businesses including retail, wealth management, corporate lending, credit cards and mortgages. It currently operates its business via two clearly defined divisions-Barclays UK and Barclays International. In this case study analysis, we analyse the various strategic business units in Barclay'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.
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.