Altria is a diversified company that operates in multiple markets – Tobacco, Beer, Processed Food and Financial Services. In the US Tobacco market, the company owns brands such as Marlboro, Virginia Slims and has 35% market share versus its competitor that has a 15% market share. US Tobacco contributes to 40% of the revenues of the company and it is a mature business. The global Tobacco business is growing and Altria is behind BAT with a 20% market share. BAT has a 30% market share. In the Food business, Altria owns Kraft and they are behind Nestle globally. The Food business contributes to 25% of the revenues. The processed food is growing at a rate of 5%. The Beer market is a mature business and Altria has a 10% market share compared to InBev’s 30% market share. Beer contributes to 15% of the revenues. The Finance business is the smallest business and contributes to 5% of revenues. This is a mature market and Altria is a distant 10th in market share.
(1) Construct the table for the BCG matrix.
(2) Construct the BCG matrix matrix
(3) Demonstrate the strategic fits if any
(4) What recommendations would you provide Altria based on this analysis.