These units generate significant profits, but require little investment to maintain their market position. Cash Cowsīusiness units with a high market share in a low-growth market are considered cash cows. These units require significant investment to maintain their market position, but they also have the potential to generate substantial profits. Starsīusiness units with a high market share in a high-growth market are considered stars. The BCG Matrix categorizes business units into four categories: stars, cash cows, dogs, and question marks. Market share is a measure of the organization's relative position in the market, while market growth rate represents the rate at which the market is growing. The matrix was developed by the Boston Consulting Group in the 1970s and is based on two key factors: market share and market growth rate. The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic planning tool used by organizations to evaluate their portfolio of business units and determine which units should receive the most investment and attention.
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