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BCG Matrix Strategy Guide

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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56 views2 pages

BCG Matrix Strategy Guide

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.

Uploaded by

aria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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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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