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  • M&M BCG Matrix

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    Sidrah Ahsan
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    The document discusses the BCG matrix, which categorizes a company's products into four groups based on their market share and market growth rate: Stars, Cash Cows, Dogs, and Question Marks. Stars have high market share and growth, while Cash Cows have high share but low growth. Dogs have low share and growth, and Question Marks have high growth but low share. The document provides strategies for managing products in each category, such as investing heavily in Stars and Question Marks but avoiding Dogs unless they can be turned around. It notes some limitations of using the BCG matrix, such as cash flow not always matching the predicted category.

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    The document discusses the BCG matrix, which categorizes a company's products into four groups based on their market share and market growth rate: Stars, Cash Cows, Dogs, and Question Marks. Stars have high market share and growth, while Cash Cows have high share but low growth. Dogs have low share and growth, and Question Marks have high growth but low share. The document provides strategies for managing products in each category, such as investing heavily in Stars and Question Marks but avoiding Dogs unless they can be turned around. It notes some limitations of using the BCG matrix, such as cash flow not always matching the predicted category.

    Copyright:

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    31 views5 pages

    M&M BCG Matrix

    Uploaded by

    Sidrah Ahsan
    The document discusses the BCG matrix, which categorizes a company's products into four groups based on their market share and market growth rate: Stars, Cash Cows, Dogs, and Question Marks. Stars have high market share and growth, while Cash Cows have high share but low growth. Dogs have low share and growth, and Question Marks have high growth but low share. The document provides strategies for managing products in each category, such as investing heavily in Stars and Question Marks but avoiding Dogs unless they can be turned around. It notes some limitations of using the BCG matrix, such as cash flow not always matching the predicted category.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    M&m Bcg Matrix.

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    M&m Bcg Matrix.Docx
    | GROWTH RATE | TOP COMPANY(Rs crore) | COMPANY SHARE(Rs crore) | RELATIVE MKT SHARE | LOG | IDEA CELLULAR | 11.00 % | 3629.61 | 3629.61 | 1 | 0 | ADITYA BIRLA MONEY | 15% | 2797.13 | 25.51 | 0.1402 | -2.04 | GRASIM INDUSTRIES LTD. | 6.2% | 58288.00 | 964.47 | 0.1898 | -1.78 | HINDALCO | 62.7 | 5178.25 | 5718.25 | 1 | 0 |

    Cash Cows Dogs Star Question Mark

    BCG matrix has 2 dimensions: market share and market growth while divided in Four categories. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share) - use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. 2. Cash Cows (=low growth, high market share) - profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high

    - Foundation of a company 3. Dogs (=low growth, low market share) - avoid and minimize the number of dogs in a company. - beware of expensive turn around plans. - deliver cash, otherwise liquidate 4. Question Marks (= high growth, low market share) - have the worst cash characteristics of all, because high demands and low returns due to low market share - if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. - either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash

    Limitations are:

    * The assumption that cash flow will be determined by a products position on the matrix is weak. Some stars will show a healthy positive cash flow as will some dogs in markets where competitive activity is low. * Treating market growth rate as proxy...

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