BCG Matrix BCG (Boston Consulting Group) matrix method is based on the product lifetime cycle theory that can be used to square off what priorities should be given in the product portfolio of business unit. To view long-term value creation, a party should have a portfolio of produces that contains both noble- growth products in need of gold inputs and base-growth products that hold a lot of profit or specie. It has two dimensions: food merchandiseplace office and market growth. It is better for industry have higher(prenominal) market share of specific product or the smart market growth. BCG matrix results four categories in a portfolio of company which are: * Stars: The stars have high growth and high market share which products use large among of cash to have hawkish position in the business so they can relent more profit. However, if needed any attempt should be do to hold share, because the rewards will be a cash terrify if market share is kept. * Cash oxen: The cash cows consider having humble growth with high market share. The gelt and generation of cash are considered high but because of low market growth the investment requires will be low. The cash cows keep profit high and observe to be foundation of company.
* Dogs: The cross which is low market growth and share. It noted that an industry should avoid or reduce the number of dogs products and also beware of expensive turn close to plans. * Question marks: The question marks show high growth and low market share. It has the worst cash characteristics of any because high demands make it to have low returns due to low market share. If industry doesnt do anything to change the market share, question mark will absorb great among of cash and may result from stopping dogs to growth. The industries either invest to a great extent or sell off or invest postal code and generate whatever cash and increase market share or deliver cash. If you want to get a sufficient essay, order it on our website:
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