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The Boston Consulting Group Matrix

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Growth Rate

Relative market share 

The subdivision of parking lot is located in the Quadrant I, it is question marks, that means it have a low relative market share position, yet the compete in a high-growth industry. This reveals that the company’s' cash needs are high and the cash generation is low. The most recommend strategies are market penetration, market development, or product development.

 

However, the subdivision of rent is located in Quadrant II, which means is consider "star". This represent the organization's best long-run opportunities for growth and profitability. This division has a high relative market share and a high industry growth rate and because of this should receive substantial investment to maintain or strengthen the position. The best alternatives are foward, backward, and horizontal integration. Also, market penetration, market development and product development.

 

The most appropriate strategies for bicity are the following.

 

MARKET PENETRATION

 

1) Develop a new app compatible with any electronic device, where user will upload their information, book a service and check availability.

2) Promote an advertising campaign through social networks, showing the benefits of using bicycle instead of any other way of transport.

3) Create loyalty with our clients giving them special gifts exclusive from bicity. 

4) Set stands and publicity in places near to the parking lot.

5) Create different promotions for the whole year.

 

PRODUCT DEVELOPMENT

 

  • Provide a security kit that helps our clients using our service at any moment.

  • Make strategic alliances with companies in order to give and receive benefits.

  • Use recycle bikes to provide our services.

  • Use new technology to expand our space to receive more bikes.

 

HORIZONTAL INTEGRATION

 

  • Make a joint venture with another company in the industry in order to increased market power over the suppliers, distributors and customers. Also access to new markets and distribution channels reducing competition and costs.

 

 

 

 

 

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