Safaricoms bcg matrix

For instance, different political regimes may have different taxation policies based on their political philosophies. Question Marks — Here, the question marks have a low market share within a high growth market.

Safaricoms bcg matrix

It has the widest mobile network in the Country with a subscriber base of over ISSN Political, socio-economic, cultural, technological, legal and ecological changes dictate that organizations like Safaricom adapt to these by initiating change management programmes. If, for instance, interest rates increase the prices of commodities will ultimately increase. This means that they are able to generate revenues in greater amounts than the investment required to maintain their business. This will undoubtedly consume cash. Safaricom Business. In the event that a star product is highly innovative, it may suffer from marketplace fluctuations ending up as a dog. Strategic Business Units, individual brands, product lines or the firm as a whole are all areas that can be analyzed using the BCG matrix. This can be done by drawing a circle for each brand within a unit, or all the brands in a company.

A sports performance and nutrition brand called PowerBar is also confirmed to be divested by the company most likely due to poor sales in a saturated market. Step 4 — Calculate Market Growth Rate. The return in investment is enormous. Safaricom can strengthen its position in the industry if it improves its customer services and relations.

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Generally this unit is largely worthless to the company in terms of earning potential but may afford other benefits to the company such as the creation of jobs as well as synergies that assist other business units. The portfolio composition is a function of the balance between cash flows.

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Whether this omission is deliberate or not is not clear. Safaricom employs over staff directly and more than indirectly, and has about base stations countrywide.

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How to Apply BCG Matrix to Your Company