![]() They are both cash generators and cash users. Stars operate in high growth industries and maintain high market share. They are capable of innovating new products which may successfully lead to star. Cash Cows are the most profitable brands and according to the Matrix, corporates should not invest in to cash cows to prompt growth but only to support them. Some dogs may be in fact profitable in the long run or simply act as a defense to counter competitor moves. They are not worth investing in and they generate low or negative cash returns. Dogs hold a low market share compared to competitors and utilize in a slow growing market. The BCG Matrix is therefore allocated into 4 areas based on an anatomy of market growth and relative market share. According to Reeves Martin, senior partner and managing director of the Boston Consulting Group, said that nearly 50 years after its inception, the BCG Matrix remains a valuable tool for helping companies understand their potential. Consequently, The Boston Consulting Group designed a product portfolio Matrix (BCG Matrix) to help businesses to analyze growth opportunities by scrutinizing both market growth, share of products, and to further assist on investing decision making, to conclusively terminate or amplify products. Every business needs a calculated and tactical plan to survive and rule in the industry. ![]()
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