Updated On: 6th March 2020 04:38:54 AM
- BCG matrix used to evaluate –
1. Whether a product should be withdraw from market or not.
2. Which product should be hold ?
3. Which product should be include in product portfolio ?
4. What should be the amount of investment on a product ?
- A company should have product portfolio of different growth rates and market share.
- It aims to evaluate each product on the basis of Market share and Market growth
CASH COW –
- Cash cows are those products which have High market share and Low growth rate.
- Cash cow is those products which generate maximum revenue because of high market share.
- Strategy for cash cows –
1. Cash cow products require minimum investment.
2. Business should hold cash cow products.
- Stars are those products which have High market share and High growth rate.
- Stars are the best products of the company.
- Stars can become cash cow in long run.
- Strategy for stars –
1. Stars require maximum investment.
2. All types of marketing, sales promotion, advertisement used for stars.
3. Business should hold stars products.
QUESTION MARK –
- Question mark are those products which have Low market share and High growth rate.
- Generally question mark is newly launched products.
- Question mark products may give high return but the same it may be flop.
- Because of uncertainty these products are called “question marks”.
- Strategy for question mark is It requires mere investment.
- Dogs are those products which have Low market share and Low growth rate
- These products not generate high revenue.
- Strategy for dogs are-
1. It is not require high revenue.
2. Business should divest these products or remap it.