1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

BCG Matrix and VRIO Framework for Nokia Beyond

2003 A Mobile Gatekeeper
case48.com/bcg-case/15953-Nokia-Beyond-2003-A-Mobile-Gatekeeper

BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting
Group, which helps in analysing the position of a strategic business unit and the potential
it has to offer. The matrix consists of 4 classifications that are based on two dimensions.
These first of these dimensions is the industry or market growth. The other of these
dimensions is the relative market share of the strategic business unit. Strategic business
units are placed in one of these 4 classifications. The BCG matrix for Nokia Beyond 2003
A Mobile Gatekeeper will help decide on the strategies that can be implemented for its
strategic business units.

Strategic business units with high market growth rate and high relative market share are
called stars. Businesses should invest in their stars and can implement vertical
integration, market penetration, product development, market development, and
horizontal integration strategies. Strategic business units with high market growth rate
and low relative market share are called question marks. These strategic business units
require close considerations whether the business should continue with them or divest.
Strategic business units with low market growth rate but with high relative market share
are called cash cows. The business should invest in these to maintain their relative market
share. Lastly, the strategic business units with low market growth rate and low relative
market share are called dogs. The business should divest these strategic business units.

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1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

BCG Matrix of Nokia Beyond 2003 A Mobile Gatekeeper

The BCG Matrix for Nokia Beyond 2003 A Mobile Gatekeeper will help Nokia Beyond
2003 A Mobile Gatekeeper in implementing the business level strategies for its business
units. The analysis will first identify where the strategic business units of Nokia Beyond
2003 A Mobile Gatekeeper fall within the BCG Matrix for Nokia Beyond 2003 A Mobile
Gatekeeper.

Stars
The financial services strategic business unit is a star in the BCG matrix of Nokia
Beyond 2003 A Mobile Gatekeeper. It operates in a market that shows potential in
the future. Nokia Beyond 2003 A Mobile Gatekeeper earns a significant amount of
its income from this SBU. Nokia Beyond 2003 A Mobile Gatekeeper should
vertically integrate by acquiring other firms in the supply chain. This will help it in
earning more profits as this Strategic business unit has potential.
The Number 1 brand Strategic business unit is a star in the BCG matrix of Nokia
Beyond 2003 A Mobile Gatekeeper, and this is also the product that generates the
greatest sales amongst its product portfolio. The potential within this market is also
high as consumers are demanding this and similar types of products. Nokia Beyond
2003 A Mobile Gatekeeper should undergo a product development strategy for this
SBU, where it develops innovative features on this product through research and
development. This will help Nokia Beyond 2003 A Mobile Gatekeeper by attracting
more customers and increases its sales.
The Number 2 brand Strategic business unit is a star in the BCG matrix of Nokia
Beyond 2003 A Mobile Gatekeeper as Nokia Beyond 2003 A Mobile Gatekeeper has
a 20% market share in this category. It also the market leader in this category. The
overall category is expected to grow at 5% in the next 5 years, which shows that the
market growth rate is expected to remain high. Nokia Beyond 2003 A Mobile
Gatekeeper should use its current products to penetrate the market. This could be
done by improving its distributions that will help in reaching out to untapped areas.
This will help increase the sales of Nokia Beyond 2003 A Mobile Gatekeeper.

Cash Cows

The supplier management service strategic business unit is a cash cow in the BCG
matrix of Nokia Beyond 2003 A Mobile Gatekeeper. This has been in operation for
over decades and has earned Nokia Beyond 2003 A Mobile Gatekeeper a significant
amount in revenue. The market share for Nokia Beyond 2003 A Mobile Gatekeeper
is high, but the overall market is declining as companies manage their supplier
themselves rather than outsourcing it. The recommended strategy for Nokia Beyond
2003 A Mobile Gatekeeper is to stop further investment in this business and keep
operating this strategic business unit as long as its profitable.

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1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

The Number 3 brand strategic business unit is a cash cow in the BCG matrix of
Nokia Beyond 2003 A Mobile Gatekeeper. This is an innovative product that has a
market share of 25% in its category. Nokia Beyond 2003 A Mobile Gatekeeper is
also the market leader in this category. The overall category has been declining
slowly in the past few years. Nokia Beyond 2003 A Mobile Gatekeeper has the
power to influence the market as well in this category. It should, therefore, invest in
research and development so that the brand could be innovated. This will help the
category grow and will turn this cash cow into a star. The overall benefit would be
an increase in sales of Nokia Beyond 2003 A Mobile Gatekeeper.
The international food strategic business unit is a cash cow in the BCG matrix for
Nokia Beyond 2003 A Mobile Gatekeeper. This business unit has a high market
share of 30% within its category, but people are now inclined less towards
international food. This change in trends has led to a decline in the growth rate of
the market. The recommended strategy for Nokia Beyond 2003 A Mobile
Gatekeeper is to invest enough to keep this strategic business unit under operations.
If it no longer remains profitable and turns into a dog, then Nokia Beyond 2003 A
Mobile Gatekeeper should divest this strategic business unit.

Question Marks

The local foods strategic business unit is a question mark in the BCG matrix for
Nokia Beyond 2003 A Mobile Gatekeeper. The recent trends within the market
show that consumers are focusing more towards local foods. Therefore, this market
is showing a high market growth rate. However, Nokia Beyond 2003 A Mobile
Gatekeeper has a low market share in this segment. The recommended strategy for
Nokia Beyond 2003 A Mobile Gatekeeper is to invest in research and development
to come up with innovative features. This product development strategy will ensure
that this strategic business unit turns into a cash cow and brings profits for the
company in the future.
The Number 4 brand strategic business unit is a question mark in the BCG matrix
for Nokia Beyond 2003 A Mobile Gatekeeper. This strategic business unit is a part
of a market that is rapidly growing. However, this strategic business unit has been
incurring losses in the past few years. It has also failed in the attempts made at
innovation by research and development teams. The recommended strategy for
Nokia Beyond 2003 A Mobile Gatekeeper is to divest and prevent any future losses
from occurring.

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1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

The confectionery strategic business unit is a question mark in the BCG matrix for
Nokia Beyond 2003 A Mobile Gatekeeper. The confectionery market is an attractive
market that is growing over the years. However, Nokia Beyond 2003 A Mobile
Gatekeeper has a low market share in this attractive market. The low sales are as a
result of low reach and poor distribution of Nokia Beyond 2003 A Mobile
Gatekeeper in this segment. The recommended strategy for Nokia Beyond 2003 A
Mobile Gatekeeper is to undergo market penetration, where it pushes to make its
product present on more outlets. This will ensure increased sales for Nokia Beyond
2003 A Mobile Gatekeeper and convert this strategic business unit into a cash cow.

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Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Nokia Beyond
2003 A Mobile Gatekeeper. This strategic business unit has been in the loss for the
last 5 years. It also operates in a market that is declining due to greater
environmental concerns. The recommended strategy for Nokia Beyond 2003 A
Mobile Gatekeeper is to divest this strategic business unit and minimise its losses.
The Number 5 brand strategic business unit is a dog in the BCG matrix for Nokia
Beyond 2003 A Mobile Gatekeeper. This is operating in a market segment that is
declining in the past 5 years. The company also has negative profits for this strategic
business unit. However, it is expected that the market will grow in the future with
environmental changes that are occurring. The recommended strategy for Nokia
Beyond 2003 A Mobile Gatekeeper is to invest in the business enough to convert
into a cash cow. This will ensure profits for Nokia Beyond 2003 A Mobile
Gatekeeper if the market starts growing again in the future.
The synthetic fibre products strategic business unit is a dog in the BCG matrix of
Nokia Beyond 2003 A Mobile Gatekeeper. The market for such products has been
declining, and as a result of this decline, Nokia Beyond 2003 A Mobile Gatekeeper
has been facing a loss in the past 3 years. The market share for it is also less than
5%. The recommended strategy for Nokia Beyond 2003 A Mobile Gatekeeper is to
divest this strategic business unit to minimise any further losses.
The artificially flavoured products strategic business unit is a dog in the BCG matrix
for Nokia Beyond 2003 A Mobile Gatekeeper. These products were launched
recently, with the prediction that this segment would grow. However, with
increasing health consciousness, people are now refraining from consumption of
artificial flavours. The market is shrinking, and Nokia Beyond 2003 A Mobile
Gatekeeper has no significant market share. The recommended strategy for Nokia
Beyond 2003 A Mobile Gatekeeper is to call back this product.

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1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

Some of the strategic business units identified in the BCG matrix for Nokia Beyond 2003
A Mobile Gatekeeper have the potential of changing from their current classification. For
example, a dog changing to a cash cow. These have been identified in the BCG matrix of
Nokia Beyond 2003 A Mobile Gatekeeper and recommended strategies to ensure such
change have also been made.

VRIO Framework
The VRIO Framework or VRIO analysis is a strategic management tool that is used to
analyse a firm’s internal strengths and resources. It helps identify which one of its
internal strengths and resources can be a source of sustained competitive advantage. The
analysis is based on the idea that a firm’s internal resources are a source of sustained
competitive advantage if they are valuable, rare, cannot be imitated by competition, and
are organised to capture value for the organisation. The VRIO analysis requires looking at
a firm's resources based on these 4 factors.

Based on the analysis, each resource can either provide a sustained competitive
advantage, has a good competitive advantage, temporary competitive advantage,
competitive parity or competitive disadvantage. A sustained competitive advantage exists
when a resource is valuable, rare, non-imitable and organised. A good competitive
advantage occurs if it is valuable, rare, and non-imitable. A temporary competitive
advantage exists if it is valuable and rare. A competitive parity occurs if it is only valuable.
Lastly, the resource is a competitive disadvantage if it is neither of the 4. The analysis
takes place in this order by first assessing whether a resource is valuable, rare, imitable
and organised.

References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
management, 17(1), 99-120.

Barney, J. (2002). Gaining and Sustaining Competitive Advantage, 2nd ed. Prentice Hall,
Upper Saddle River, NJ.

Cardeal, N., & Antonio, N. S. (2012). Valuable, rare, inimitable resources and
organization (VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities:
What leads to competitive advantage?

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and
performance in the BCG matrix—A PIMS-based analysis of industrial product businesses.
Academy of Management Journal, 25(3), 510-531.

Jurevicius, O. (2013a). VRIO Framework. Retrieved from

https://www.strategicmanagementinsight.com/tools/vrio.html

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1/25/22, 10:26 PM BCG Matrix and VRIO Framework for Nokia Beyond 2003 A Mobile Gatekeeper

Jurevicius, O. (2013b). BCG growth-share matrix. Retrieved from

https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html

Knott, P. J. (2015). Does VRIO help managers evaluate a firm’s resources? Management
Decision, 53(8), 1806-1822.

Seeger, J. A. (1984). Research note and communication. Reversing the images of BCG's
growth/share matrix. Strategic Management Journal, 5(1), 93-97.

Smith, M. (2002). Derrick's Ice–Cream Company: applying the BCG matrix in customer
profitability analysis. Accounting education, 11(4), 365-375.

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