BCG matrix Analysis of TATA STEEL LTD:

STAR:
The Ferro alloys and minerals division in TATA in the TATA STEEL LTD would fallinto the category of stars of the BCG Matrix. The production in this division is 1.302millions tones and the overall sales has exceeded to 1.508 millions tones. Infrastructuralinvestment in Asia resulted in improvement in the demand for stainless steel. ChromeAlloys exports (including charge chrome from TATA Steel KZN PTE LTD) touched anall time high and the division recorded its highest ever global market share of 6% inFY10. The first oversees hub of TSL was established in South Korea. In India our FerroAlloys and minerals division is the market leader in Ferro Chrome Business with amarket share of around 27%. Manganese Alloys sales recorded an all time high in thefinancial year 2009-2010 and TATA Steel attained the status of being the largest producer of Manganese Alloys in India.

CASH COW:
The steel division of the company falls into the category of cash cow of the BCG Matrix.The production is 6.439 million tones but the over all sales are 6.170 million tones.Despite sales being lower than the production in the FY 10. The over all sales grew by18% over last year (5.232 million tones in the FY09).

QUESTION MARK:

The bearing division and the tubes division fall into the category of question mark in theBCG Matrix. They are growing rapidly but have low market product share. They have the potential to gain market share and become a star. It can also become cash cow when themarket growth slows.

DOG:
None of the divisions of the TATA Steel can be classified into dogs. All of them havegood market share and good market growth.