Boston Consulting Group (BCG) GrowthShare Matrix by lap14150

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									 Boston Consulting Group
(BCG) Growth/Share Matrix
        Dr. Jeff Shay
             Portfolio Planning:
           Four Areas of Emphasis
•   Allocating resources
•   Formulating business-unit strategy
•   Setting performance targets
•   Analyzing portfolio balance
    – Cash flow
    – Continuity
    – Risk
    BCG Growth-Share Matrix
 High             Star                   Question Mark



Market
Growth
              Cash Cow                           Dog




  Low
         Strong                                        Weak
                         Relative Market Share
    Four Main Strategies of the BCG
                 Model
•   Increase market share
•   Hold market share
•   Harvest
•   Divest
         BCG Growth-Share Matrix:
         Quadrant Characteristics
 30% Star                                 Question Mark
         Earnings: high stable, growing   Earnings: low, unstable, growing
         Cash flow: neutral               Cash flow: negative
         Strategy: hold or invest for     Strategy: increase market share
         growth                           or harvest/divest
Market
Growth
         Cash Cow                         Dog
         Earnings: high stable            Earnings: low, unstable
         Cash flow: high stable           Cash flow: neutral or negative
         Strategy: hold or add market     Strategy: harvest/divest
-10%     share


         10                             1.0                            .1
                       Relative Market Share
  Using the Model: Symbols


Product A                  Product A
Total       Market          Previous
Market      Share         Market Size
                          and Position




                         Product B Market
                     B   Smaller but firm
                         has greater share
           Plotting Your SBU’s
  30% Star                        Question Mark
                         C              C
                                                  B
Market              A
Growth
         Cash Cow                 Dog

                    A                        B

 -10%
         10                    1.0                    .1
                    Relative Market Share
              Traditional SBU
              or Product Path
  30% Star                        Question Mark

                      2                     1
Market
Growth
         Cash Cow                 Dog

                     3                      2

                                            4
 -10%
         10                    1.0                .1
                    Relative Market Share

								
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