BCG Matrix

Stars (high growth, high Question Marks (= high

market share)
Generate large amounts of cash
and typically leaders in the
business
Roughly in balance on net cash
flow
Attempt should be made to hold
market share, because the
rewards will be a cash cow if
market share is kept
growth, low market share)
Worst characteristics due to high
cash demands and low returns
High based on low market share
If market shares not changed,
question marks will simply absorb
great amounts of cash and later, as
the growth stops, transform to
Question Mark / dogs
STAR
Problem Child
Business Growth Options are to increase market
share (via greater investment) or
deliver cash
Rate

Cash Cows (low growth, Dogs (=low growth, low

high market share) market share)
Profits and cash generation Avoid and reduce the number of
should be high , and because of dogs in a company
COW DOG
the low growth, investments Beware of expensive turn around
needed should be low. Keep plans
profits high Deliver cash, otherwise liquidate
Bedrock of a company
Low
Relative Position
High Low
(Market Share)

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