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Question Marks

High Growth, Low Market Share


Most businesses start as question marks (also known as problem child)
They will absorb great amounts of cash if market share remains unchanged (low)
Have the potential to become star and eventually Cash Cow, but can also become Dog
Must be analyzed carefully in order to determine whether they are worth the investment
required to grow market share.
Tip: Grow sales by increasing market share. Use cash from Cash Cows to support required
investments.
Question Mark examples:
Apple = Mac Book Air
Coca-Cola = FUZE Healthy Infusions
Stars
High Growth, High Market Share
Stars are leaders in business.
Require heavy investment to remain its large marketshare.
Leads to large amounts of cash consumption and cash generation
Attempts should be made to hold the marketshare otherwise the Star will become the next
Cash Cow.
Tips: Invest for sales growth and market share. Use cash from Cash Cows to support required
investments.
Star examples:
Apple = iPhone
Coca-Cola = Vitamin Water
Cash Cows
Low Growth, High Market Share

Foundation of the company and Stars of yesterday


Generate more cash than required
Extract profits by investing as little cash as possible
located in an industry that is mature and not growing or declining
Tips: Maintain the strong market position and defend your market share. Take advantage of sales
volume and leverage the size of operations. Support other businesses.
Cash Cow examples:
Apple = iPods
Coca-Cola = Coca-Cola Classic
Dogs
Low Growth, Low Market Share
Cash traps
Do not have potential to bring in much cash
Number of dogs in country should be minimalized
Business is situated at a declining stage
Tips: Optimize your current operations. Get rid of all non value added activities and features.
Reposition your offering to generate positive cash flow or sell this business.
Dog examples:
Apple = Since good company should not have any dogs
Coca-Cola = New Coke

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