![]() A firm benefits from utilizing economies of scale and gains a cost advantage relative to competitors. The assumption in the matrix is that an increase in relative market share will result in increased cash flow. Cash cows: Products with low market growth but a high market share.Dogs: Products with low market growth and a low market share.Stars: Products with high market growth and a high market share.Question marks: Products with high market growth but a low market share.In addition, there are four quadrants in the BCG Matrix: The vertical axis of the BCG Matrix represents the growth rate of a product and its potential to grow in a particular market. By using relative market share, it helps measure a company’s competitiveness. The horizontal axis of the BCG Matrix represents the amount of market share of a product and its strength in the particular market. Understanding the Boston Consulting Group (BCG) Matrix Learn more about strategy in CFI’s Business Strategy Course. Each quadrant is classified as low or high performance, depending on the relative market share and market growth rate. It classifies a firm’s product and/or services into a two-by-two matrix. The BCG Matrix is one of the most popular portfolio analysis methods. The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm’s brand portfolio. Updated NovemWhat is the Boston Consulting Group (BCG) Matrix?
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