BCG growth-share matrix – Cash cowsĬash cows are products in low-growth areas for which the company has a high market share. The 4 quadrants of the BCG growth-share matrix are “cash cows”, “dogs”, “question marks” and “stars”. Let’s dive deeper and learn more about the four quadrants of the matrix. What are the 4 quadrants of the BCG matrix? The company then decides where to allocate resources and which products to prioritize. The matrix was created in 1970 by management expert Bruce Henderson, founder of Boston Consulting Group (BCG), one of the most influential strategies consulting organizations in the world.Īlso known as the BCG growth-share matrix, this business analytical tool provides the company with a four-quadrant chart where products are ranked on the basis of their relative market shares and growth rates. their product lines) or any other cash-generating entities by their degree of profitability. The growth-share matrix is a business framework that helps companies analyze their business units (i.e. What is the BCG growth-share matrix and why should you use it in your business? Check the previous five: Porter’s 5 Forces, PESTEL, Hofstede’s Cultural Dimensions theory, the Porter Diamond Model and the McKinsey 7S model. The BCG Growth-Share matrix is the sixth business framework showcased in our BUSINESS reSOURCES series.
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