Watch out for expensive ‘rescue plans’.Avoid and minimize the number of Dogs in a company.Cash Cows are often the stars of yesterday and they are the foundation.Investments which are needed should be low. Profits and cash generation should be high.Cash Cows (low growth, high market share).If needed any attempt should be made to hold your market share in Stars,īecause the rewards will be Cash Cows if market share is kept. Stars are frequently roughly in balance on net cash flow.Therefore they should also generate large amounts of cash. Stars are using large amounts of cash.Placing products in the BCG matrix provides 4 categories in a portfolio The basic idea behind it is: if a product has aīigger market share, or if the product's market grows faster, it is better The Boston Consulting Group Matrix has 2 dimensions: market shareĪnd market growth. Products in need of cash inputs and low-growth products that generate a lot To ensure long-term value creation,Ī company should have a portfolio of products that contains both high-growth The product portfolio of a business unit.
The BCG Matrix can be used to determine what priorities should be given in It was developed in the early 70s by the Boston Consulting Group. The BCG Matrix method is the most well-known portfolio management tool. Welcome to the knowledge center about Strategic Portfolio Management.
