![]() If the firm sees potential in developing these, then they can get converted into stars and then into cash cows over the period of time. They generally demand huge investments to maintain their market share and the firm has to be very vigilant to analyze these SBUs and accordingly take decisions. ![]() These SBUs have low market share but are present highly growing industries. They act as the stable income generating resource of the firm. They require little investments and generate huge returns. These SBUs command a huge market share but in a slow growing or a mature industry. They also require huge investments to maintain their competitiveness and businesses try to convert them into cash cows. The SBUs in this cell have a high market share and survive in a highly growing industry. These classifications in the BCG Matrix are known as Stars, Cash Cows, Question Marks and Dogs. Accordingly the 4 cells are calls are cells are called as Stars, Dogs, Question marks and Cash cows.īCG matrix helps to determine the resource allocation to be done to each of the SBU depending on its location on the BCG Matrix.īCG matrix is divided into four quadrants or categories based on the market share and the growth rate of products. Market growth rate=Industry sales this year/Industry sales last yearīCG Matrix is a 2*2 matrix which provides a detailed analysis of each of the SBUs based on the above 2 metrics.īCG matrix has 4 cells with different levels of market share and industry performance. Relative market share= SBU Sales/ Leading competitors sales BCG Matrix identifies and bifurcates products base on their relative market share as well as the market growth rate, Market share is an importance parameters used in evaluation a companies performance. BCG Matrix is a 2x2 matrix bifurcating products based on high and low growth rate and market share. Developed by Bruce Henderson of Boston Consulting Group in the early 1970s, BCG Matrix is a strategic tool to analyse a business’s portfolio on the basis of relative market share and industry growth rate. You can download it here for free.BCG Matrix is a performance measurement tool for the products of a company. This is product which is giving you money now.
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