Escolar Documentos
Profissional Documentos
Cultura Documentos
All
Technologies IT & IS
Other
Site map
Directory
Maxi Pedia
Advertise on Maxi-Pedia
Search
Interesting Topics
Quantitative Strategic Planning Matrix (QSPM) Five Forces Model by Michael Porter Balanced Scorecard EFE Matrix (External Factor Evaluation) SPACE Matrix Strategic Management Method Internal-External (IE) Matrix Product Life Cycle IFE Matrix (Internal Factor Evaluation) SWOT Analysis Matrix
The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market gro th and market share relative to the largest competitor.
Related Topics
SPACE Matrix Strategic Management Method The SPACE matrix is a management tool used to analyze a company. It is used to determine what type ... Internal-External (IE) Matrix The Internal-External (IE) matrix is another strategic management tool used to analyze working cond ...
1/9
11/6/11
analyze working cond ... Product Life Cycle Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product. Prod ... SWOT Analysis Matrix SWOT analysis, method, or model is a way to analyze competitive position of your company. SWOT analy ... EFE Matrix (External Factor Evaluation) External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessm ...
Favorite Topic
Carriage return and line feed problems Line feed and carriage return are two different ways of how your computer sees the Enter key.While for example the character M is interpreted the same way in Windows and in UNIX, the ENTER key is interpreted differently. This causes problems when transferring files and data from one platform to another one ...
Traveling to Europe? You might need Schengen visa How to find a job? Awesome jokes about economic crisis Why gas prices are so low?
11/6/11
sell? Furthermore, we also ask, where does each of our products fit into our product mix? Should we promote one product more than the other one? The BCG matri can help with this. The BCG matri reaches further behind product mix. Knowing what we are selling helps managers to make decisions about what priorities to assign to not only products but also company departments and business units.
What is the BCG matrix and how does the BCG model work
Placing products in the BCG matrix results in categories in a portfolio of a company: BCG STARS (high growth, high market share) - Stars are defined by having high market share in a growing market. - Stars are the leaders in the business but still need a lot of support for promotion a placement. - If market share is kept, Stars are likely to grow into cash cows. BCG QUESTION MARKS (high growth, low market share) - These products are in growing markets but have low market share. - Question marks are
.ma i-pedia.com/BCG+matri +model
3/9
11/6/11
essentially new products where buyers have yet to discover them. - The marketing strategy is to get markets to adopt these products. - Question marks have high demands and low returns due to low market share. - These products need to increase their market share quickly or they become dogs. - The best way to handle Question marks is to either invest heavily in them to gain market share or to sell them. BCG CASH CO S (low growth, high market share) - Cash cows are in a position of high market share in a mature market. - If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. - Because of the low growth, promotion and placement investments are low. - Investments into supporting infrastructure can improve efficiency and increase cash flow more. - Cash cows are the products that businesses strive for. BCG DOGS (low growth, low market share) - Dogs are in low growth markets and have low market share. - Dogs should be avoided and minimized. - Expensive turn-around plans usually do not help.
.ma i-pedia.com/BCG+matri +model
4/9
11/6/11
5/9
11/6/11
The model neglects the effects of synergy between business units Market growth is not the only indicator for attractiveness of a market
There are probably even more aspects that need to be considered in a particular use of the BCG model.
Where can I find more information about the BCG matrix model
We recommend reading the following book: Bo:Cr W ok al . Sen Gog tr, ere Saktl Prpcie o esetvs n Srtg tae This book was published by the Boston Consulting Group.
analysis
6/9
11/6/11
analysis
The BCG matrix can help to find a strategy. But, what if we have 2-3 strategies and need to decide which one is the best one? The Quantitative Strategic Planning Matrix (QSPM) model can be used to compare strategic alternatives.
7/9
11/6/11
8/9
11/6/11
Copyright Maxi-Pedia http://www.Maxi-Pedia.com Reproduction without written permission from Maxi-Pedia is prohibited. All articles are protected by copyright and have been archived at a national library. Linking to Maxi-Pedia pages is permitted provided that the links are clearly acknowledged. Thank you.
http://www.Maxi-Pedia.com - Copyright
9/9