Case Study: Product Analytics: Resource Allocation Using the BCG Matrix

You are the portfolio manager for Honda motor company. You have been asked to consider the role that six Honda vehicles play in the overall portfolio of the company. In the case, each Honda vehicle, such as the Honda Accord, represents a different automotive category, such as the Midsize category. The portfolio exercise asks you to consider how the sales performance of these vehicles compares with that of market leader Toyota for their respective categories. According to Statista, total light vehicle sales (the entire industry) increased approximately 11.1%. You have gathered the following 2010 sales data for Honda, Toyota, and total sales and growth rates for six automotive categories:

Table: Sales Data

Category	Honda	Sales, 2010	Toyota	Sales, 2010	Category; Growth
Midsize	Accord	186,356	Camry	189,297	1,942,699; +10.2%
Small	Civic	156,832	Corolla	167,846	1,324,140; - 4.9%
Minivan	Odyssey	62,278	Sienna	53,482	449,546; +11.0%
Midsize SUV	Pilot	59,681	4-Runner	25,767	341,886; +27.3%
Crossover	Element	8,306	Venza	29,220	1,542,211; +14.0%
Pickup	Ridgeline	9,848	Tacoma	60,471	1,045,835; +10.6%

Note: This course uses US-English conventions: Periods (.) are used to separate whole numbers from decimals and commas (,) are used to separate thousands.

For the case study, assume that the entire industry consists of only Honda and Toyota, that you would calculate market share by dividing company sales for each automobile category by the total sales for that category, and that you would calculate relative market share by dividing the sales of Honda by those of Toyota.

To solve the case study, calculate the market share and relative market share and plot the data on to a Boston Consulting Group (BCG) matrix. Follow the techniques covered in this module's lectures or the recommended textbook.

Note: You only have one opportunity to answer each question.

Problem 1

Which of the following selections best represents the market share for the Honda Ridgeline vehicle?

a. 0.9%

b. 0.5%

c. 17.4%

d. 13.8%

Problem 2

Which of the following selections best represents the relative market share for the Honda Civic vehicle?

a. 0.99

b. 0.26

c. 0.93

d. 0.15

Problem 3

Which of the following selections best represents the portfolio category (cash cow, dog, question mark, or star) for the Honda Accord vehicle, according to the BCG methodology?

a. Cash cow

b. Dog

c. Question mark

d. Star

Problem 4

Which of the following selections makes the most sense to execute for the Honda Pilot vehicle, using the BCG methodology and the data given in the case?

a. Divest from portfolio

b. Maintain market share

c. Investigate situation further

d. Market aggressively

Problem 5

Which of the following selections makes the most sense to execute for the Honda Element vehicle, using the BCG methodology and the data given in the case?

a. Divest from portfolio

b. Maintain market share

c. Investigate situation further

d. Market aggressively