1) Is company balanced ?

A) We would say that the company is balanced, with enough ‘QUESTION MARK’ and
‘STARS’ that have the potential to become ‘CASH COW’.

We have sufficient cash cows product 3 and product 4 that generate the desire business
benefits at a comparatively low cost and are therefore able to help fund the developement of
new products, ‘QUESTION MARK’ , and ‘STARS’

Finally the ‘DOG’ can be minimised, as they incur cost deliver only limited benefits.

2) Identify the strengths and weakness of the company ?

A) Taken all the factors together the company's strengths are - ‘STARS’- Product 2 ,
‘CASH COW’ Product 3 and Product 4 , ‘QUESTION MARK’ Product 1 are the ideal path
of strengths to the company.

And the weakness is the ‘DOG’ Product 5 need to be liquidated to free up cash with little
potential and use it elsewhere.

3) Propose strategies for each Division / Product ?

A) Product 1 Which is operating with low marketshare in high growth market. It has the
potential to gain market share and become ‘STARS’ (Market leaders) eventually. If managed
well Product 1 will grow rapidly and thus consume a large amount of cash investements.

Product 2 in the ‘STAR’ quadrant with high market share and high market growth. Peoduct
2 generate large amounts of cash due to their high relative marketshare but also require large
investments to fight competitors and maintain their growth rate. Product 2 ensures future
cashflows in the longterm.

Product 3 and 4 operating as ‘CASH COW’ where they have a large relative marketshare in
a stagnatic market, Profits and cashflows are expected to be high. Because of the lower
growth rate, investments needed should also be low. Product 3 and 4 typically generate cash
in excess of the amount of cash needed to maintain the company. This excess cash is used for
investments in * and ‘QUESTION MARK’ . ‘CASH COW’ ultimately bring balance and
stability to a portifolio.

Product 5 which is in a slow growth or declining market with a small relative marketshare.
Product 5 typically breakeven and generate barely enough cash to maintain the company's
market share. ‘DOG’ is likely to be divested or liquidated.