Independent University, Bangladesh
Topic- BCG matrix of Walton company
SUBMITTED TO
Name- Zakia Binte Jamal
Senior Lecturer, Marketing Department
Independent University Bangladesh
SUBMITTED BY
GROUP-10
SL No. Student Name Student ID
1 Rafikul islam shanto 1910361
2 Tazzamul Bari Bishal 1910290
3 Rohan Isfar Chowdhury 1911036
4 Tanzila Ahmed Prema 1821004
5 MJinhazur Rahman Fahim 2120319
Introduction
Company overview
First in Bangladesh, Walton Company manufactures refrigerators, freezers, air conditioners,
televisions, automobiles and smart phones. S.M Nurul Alam Rezvi started the Walton Group
of Industries in 1977 as a trading company. It is a sister concern of the R.B group, a
Bangladeshi conglomerate. With manufacture of electrical and electronic devices as its
starting point in 1994, Walton expanded its operations into many other electronic fields,
which are the foundation for practically every part of modern life.
Walton's secret to success is its ability to change manufacturing capacity while also tailoring
new products to meet specific consumer needs. When it comes to Bangladeshi customers,
Walton is the newest multinational brand, offering a wide range of smart-phones and motor
cycles, refrigerator and freezer units, LCD, CRT and DVD players as well as microwave
ovens and steam ovens. Walton also offers washing machines and irons as well as home
appliances (such as a blender, juicer, rice cooker and electric kettle). Walton also has one of
the largest and best-equipped R&D facilities in the country.
Dedicated to constructing a more modern society, Walton's Innovation produces 3 million
refrigerators per year, 0.30 million air conditioners, 0.15 million motorcycles, and 1.5 million
television sets per year with these cutting-edge technologies. Through the global
implementation of their distinctive Social Innovation strategy, all 21 000+ Walton Group
workers are working together to tackle market obstacles and meet customer requests all
around the world. There are more than 4000 Walton retail organs spread throughout
distributors and dealers.
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Mission, Vision & Objective of Walton Bangladesh Limited
Mission:
“To grow and increase value by implementing advanced technologies, new products and
services to provide excellent solutions to satisfy customers’ requirements.”
Vision:
“To provide the best solution and equipment to customer.”
Goal:
“To achieve market leadership, profitability, good corporate citizenship and a sustainable
growth.”
Objectives:
“The main objective of the company is to increase the market share in related diversified
products and solutions in Bangladesh and to assure the potential customers of the quality and
durability of the products. Although the products are a bit highly priced but it is the best
bargain that money can buy.”
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Product Lines
Walton Company has a wide range of products under each of its‟ units. As the numbers of
products are very huge in electronic and plastic, they are not segregated in this study hence
considered as single product.
Refrigerator & Freezer
Television
Mobile
Computer
E-Bike
Takyon
Air Conditioner
Microwave and Electric Oven
Blender and Mixer Grinder
Washing Machine
Home Appliances
Kitchen Appliances
Fan
LED Light
Electrical Accessories
Cables
Elevator
Compressor
Battery
Hardware & Sanitary Solutions
Industrial Solutions
Hardware Items
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Walton Company Product Portfolio
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SBU Analysis
The BCG Growth Share Matrix is a portfolio planning process that examines the SBUs'
business unit for market growth rates and related market capitalization. SMU is classified as a
star, a cow, a question mark or a dog (Kotler - 1999). The product is divided on the basis of
information in the annual report.
Refrigerator Question Mark
HIGH
LOW
TV, Smart
Stars
phnoe
Market
Growth
Rate
Cash Cows Dogs
Home applience Motorcycle
High Low
Relative Market Share
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BCG Matrix of ACI Product’s
Stars are well-known, fast-growing or high share products. Walton Company Refrigerator
stars product. Large amount of money are often needed to rapid growth. Eventually, their
growth will be slow and they will turn into cash cows. In particular, for Refrigerator product,
they should focus on expanding production and distribution, both nationally and
internationally, beyond international regulations.
Cash cows are low-growth, high-share businesses or products, including – Walton Home
appliance. These products have huge market share but industry cannot grow more. The
production line is largely recouped, and there is a limited investment in marketing. So,
company earn revenue from this product and invested those industry where industry growing.
Question marks are low-share business unit in high growth markets, including Walton
Company TV, Smart phone. They need money to keep their share without letting them grow.
Management needs to think carefully about the question marks they need to be marked once
and removed. Here company must decide they will invest more money for the product
marketing or they to make the product a star or flow down to become a dog or they will stop
investing.
Dogs are low-growth, low-share businesses and products. They may enough cash to maintain
themselves, but do not promise to be large sources of cash. Motorcycle is the dog for the
company. Here company profit margins are low, Company market share hardly grows or
even shrinks. For this state company are not eager to invest in marketing. Many companies
will choose not to produce the product at all.
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Recommendation
For management structure:
Should have move from the „machine bureaucracy‟ structure to „diversified form‟ which
featured by:
Simple static diverse environment,
Very large old divisible internal factors,
Standardization of outputs, and
Key middle line managers.
For marketing:
Continue to invest in questionable brands, such as TV Smart Phone. Because these
companies have a lot of room for expansion in the future.
Finding new markets through creating new medicines or rebranding existing ones in
the pharmaceutical industry, both nationally and globally.
A considerably more aggressive promotional campaign accompanied by a pricing
strategy meant to make the market undesirable for competitors would be required in
order to penetrate an established market.
Develop a strategy for the product development sector to generate new capabilities
and necessitates the creation of adapted products that can still be sold in existing
markets.
For Distribution:
1. Open More branded outlet where all their products will be available.
For Research & Development:
The future growth potential of many of Walton's products, particularly in electronics and
plastics, means that the company should engage in research and development to create new
products and expand its market share. Electronics products, in particular, should undergo
substantial R&D because they have the potential to grow both in the domestic and foreign
markets.
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Conclusion
The machine bureaucracy that Walton possesses is now appropriate for this type of business,
as evidenced by our examination of the company's management structure, financial health,
marketing strategy, and distribution network. It has solid financial strength and a wide range
of products. The company's long-term viability is ensured by the high growth potential of
most of its goods.
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