Development Strategy Analysis of Fertilizer Company Using BCG Matriks Method

• Published in: IOP conference series. Materials Science and Engineering Vol. 851; no. 1; pp. 12015 - 12019
• Main Authors: Yahya, I, Anizar, Khatami, G, Al Khansa, T
• Format: Journal Article
• Language: English
• Published: Bristol IOP Publishing 01.05.2020
• Subjects: Fertilizers; Market shares; Resource allocation
• ISSN: 1757-8981; 1757-899X; 1757-899X
• DOI: 10.1088/1757-899X/851/1/012015

This study aims to analyse the strategy of a fertilizer company that produces urea-based fertilizer and organic fertilizer. A company should always have a certain development strategy by observing its growth rate and comparing it with other competitors. Boston Consulting Group (BCG) Matrix can recommend regarding the strategy needed for resource allocation and company development. Two competitors are chosen to decide this company position: the first one is a market leader with the best company growth rate and highest relative market share, and the second one is an equivalent to the company being studied in terms of its production and sales. The growth of 5.63% in fertilizer sales indicates a high market share growth rate. The relative market share of this fertilizer company compared to the first competitor and the second competitor is 0.117 and 0.476 respectively, meaning that it has a low market share as the number is smaller than 1. In BCG Matrix, this company is in the Question Marks position (quadrant II).