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  • BCG Matrix: Question Marks Stars

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    The BCG matrix is used to analyze a company's business portfolio. It categorizes business units into four groups based on their relative market share and industry growth rate: Stars perform well but require substantial investment, Cash Cows are stable but low growth, Question Marks have potential but need resources to improve their market share, and Dogs have low share and growth and may need to be divested. The matrix helps identify strategic options for each category of business unit.

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    BCG Matrix

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    The BCG matrix is used to analyze a company's business portfolio. It categorizes business units into four groups based on their relative market share and industry growth rate: Stars perform well but require substantial investment, Cash Cows are stable but low growth, Question Marks have potential but need resources to improve their market share, and Dogs have low share and growth and may need to be divested. The matrix helps identify strategic options for each category of business unit.

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    18 views2 pages

    BCG Matrix: Question Marks Stars

    Uploaded by

    aria
    The BCG matrix is used to analyze a company's business portfolio. It categorizes business units into four groups based on their relative market share and industry growth rate: Stars perform well but require substantial investment, Cash Cows are stable but low growth, Question Marks have potential but need resources to improve their market share, and Dogs have low share and growth and may need to be divested. The matrix helps identify strategic options for each category of business unit.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    BCG Matrix

    Enhances multi-divisional firm in formulating strategies


    Autonomous divisions = business portfolio
    Divisions may compete in different industries
    Focus on market-share position & industry growth rate

    BCG Matrix
    Relative Market Share Position
    High Medium Low
    1.0 .50 0.0
    Industry Sales Growth Rate

    High
    +20

    Stars Question Marks


    II I
    Medium
    0

    Cash Cows Dogs


    III IV
    Low
    -20
    Source: Strategic Management: Concepts & Cases 12th Edition by Fred David, Prentice hall

    Question Marks Low relative market share compete in high-growth industry


    Decision to strengthen (intensive strategies) or divest

    Stars High relative market share and high growth rate


    Substantial investment to maintain or strengthen dominant
    position

    Cash Cows High relative market share, competes in low-growth industry


    Maintain strong position as long as possible

    Dogs Low relative market share & compete in slow or no market


    growth
    Liquidation, divestiture, retrenchment

    Adapted by : Strategic Management: Concepts & Cases 12th Edition by Fred David, Prentice hall

    Porters generic strategies

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