![]() ![]() ![]() Pets are unnecessary they are evidence of failure to either obtain a leadership position or to get out and cut the losses. All products will eventually become either cash cows or pets. Companies should liquidate, divest, or reposition these “pets.”Īs can be seen, product value depends entirely on whether or not a company is able to obtain a leading share of its market before growth slows. Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Companies should significantly invest in these “stars” as they have high future potential. Companies should milk these “cash cows” for cash to reinvest. The matrix reveals two factors that companies should consider when deciding where to invest-company competitiveness, and market attractiveness-with relative market share and growth rate as the underlying drivers of these factors.Įach of the four quadrants represents a specific combination of relative market share, and growth: It is often the Star product that allowed the company to grow before. These high growth rates then signal which markets have the most growth potential. In this article, you will find the definition of BCG Matrix and 5 examples of. Ultimately, the market leader obtains a self-reinforcing cost advantage that competitors find difficult to replicate. An example of an SBU that could be classified as a star for a mobile phone or technology corporation is a flagship smartphone model with a significant market share and operating in a rapidly growing market. The growth share matrix was built on the logic that market leadership results in sustainable superior returns. The BCG matrix provides a visual representation of a companys SBUs, allowing managers to evaluate their performance and potential. Technology, Media, and Telecommunications. ![]()
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