INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
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IMPROVING THE PRODUCT POLICY OF DOMESTIC INDUSTRIAL
ENTERPRISES
Bazarova Mamlakat Supiyevna
Senior Lecturer, Asian International University
Abstract:
The article covers the importance of commodity policy and assortment in domestic
industrial enterprises, the role of identifying low-profit goods in the assortment and optimizing
production costs by improving commodity policy.
Keywords:
industry, assortment, commodity policy, BCG Matrix, industrial marketing.
In a competitive market, running a successful business consists not only in producing high-
quality, advanced products that meet global market demands — this accounts for only half of
entrepreneurial success. The other half lies in knowing how to sell and provide services. It is
necessary to generate consumer interest in the company’s products. In this regard, the
availability of high-quality goods and the identification of low-profit items within the
assortment policy are considered important criteria.
In the Decree of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev dated February
7, 2017, № PF-4947 “On the Strategy of Actions for Further Development of the Republic of
Uzbekistan,” it is not without reason that the priority was set to “bring industry to a
qualitatively new stage through the intensive development of high-tech processing sectors,
primarily on the basis of deep processing of local raw materials, and the production of finished
products with high added value, thereby further modernizing and diversifying the industry.”
Indeed, industrial enterprises account for a significant part of the products manufactured in the
country.
Currently, special attention is being paid to the rapid modernization and technical re-equipment
of enterprises, and the establishment of new, modern production capacities in such sectors as
automotive and gas-chemical industries, electrical engineering and textiles, food and
pharmaceuticals, agriculture and food industry, information and telecommunications, and other
areas based on advanced technologies.
The role of industrial marketing in the development of marketing strategies of industrial
enterprises is invaluable. Industrial marketing serves as the theoretical basis for developing
strategies for every unit of the enterprise. Industrial marketing is the sale of goods and services
to industrial and institutional clients. These include manufacturing companies, government
institutions, utilities, educational and medical institutions, wholesale and retail traders, as well
as other organizations.
In the strategic development of the marketing system in industrial enterprises, the company’s
business portfolio matrix is a two-dimensional model that compares the strategic position of
each type of business activity. One of the widely used methods in evaluating the quality of
modernized company activities is the matrix analysis of the business portfolio. The business
portfolio matrix is a table that compares the strategic state of each structural unit of the
modernized company. The matrix can be built based on any pair of indicators characterizing
strategic conditions.
Of particular importance are industry growth rates, market share, long-term attractiveness of the
industry, competitiveness, and the stage of development of the product or market. Typically,
one axis of the matrix represents industry attractiveness, while the other reflects the position of
a specific type of activity. Three types of business portfolio matrices are widely used: the
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 47
“growth/share” matrix developed by BCG, the industry attractiveness/competitive position
matrix created by General Electric, and Hofer A.D. Little’s life cycle matrix.
The BCG matrix compares and analyzes the position of a diversified company’s business units
based on indicators of industry growth rate and relative market share. The most widely used
labor activity portfolio matrix, consisting of four quadrants, was developed by the leading
consulting company Boston Consulting Group (BCG).
The formation of assortment policy in industrial enterprises is considered an important direction
in many studies. One of the most widespread methods of analyzing enterprise activity and
developing marketing strategies for assortment is the matrix method. The product assortment
portfolio matrix consists of two-dimensional indicators that reflect the positions of the
enterprise’s activity strategy. The BCG or “growth-share” matrix has four quadrants,
constructed using sales growth rates and relative market shares.
In the four-quadrant matrix, types of production or products are placed in circles. Their
placement is determined based on calculations of market growth rates and the relative market
shares of products. In shaping the product strategy of manufacturing enterprises, it is
recommended to use the model known as the BCG matrix. To use this method, the BCG matrix
must first be constructed.
Figure 1. “Growth-Market Share” Matrix.
To construct the BCG matrix, two indicators are used:
1.
Growth rate of the product market or sales volume of the product;
2.
Relative share of the enterprise in the market compared to its main competitor.
Each of the four quadrants requires different approaches in terms of financing product
manufacturing and developing product strategy:
Quadrant 1 (Stars):
high market growth rate and high relative market share. Strategies
should focus on strengthening and expanding production.
Quadrant 2 (Cash Cows):
low market growth rate but high relative market share.
These generate more income than the funds required to maintain market share. They serve as
sources of financing for diversification or research and development.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 48
Quadrant 3 (Dogs):
low market growth rate and low relative market share. Continuing
their production requires high costs, with little chance of improvement.
Quadrant 4 (Question Marks):
high market growth rate and low relative market share.
They have development opportunities as the market expands, but without financial support,
they risk turning into “Dogs.” Strategies here should focus on increasing market share and
reinvestment.
In practice, to use the BCG matrix correctly in developing product strategy in manufacturing
enterprises, it is necessary to accurately assess the market growth rate and the enterprise’s
relative market share. When assessing the market growth rate, it is recommended to use
reporting data not exceeding one year. In the research process, methods such as grouping,
structural analysis, and BCG analysis are applied.
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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 49
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