boston consulting group matrix

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1、BOSTONCONSULTINGGROUPMATRIXPRESENTEDBY:ESHASHAHNEHASARAFMONTUKANSARAINTRODUCTIONBOSTONCONSULTINGGROUP(BCG)MATRIXisdevelopedbyBRUCEHENDERSONoftheBOSTONCONSULTINGGROUPINTHEEARLY1970’s.Accordingtothistechnique,businessesorproductsareclassifiedasloworhighperformersdependingupontheirmarke

2、tgrowthrateandrelativemarketshare.RelativeMarketShareandMarketGrowthTounderstandtheBostonMatrixyouneedtounderstandhowmarketshareandmarketgrowthinterrelate.MARKETSHAREMarketshareisthepercentageofthetotalmarketthatisbeingservicedbyyourcompany,measuredeitherinrevenuetermsorunitvolumeterm

3、s.RELATIVEMARKETSHARERMS=BusinessunitsalesthisyearLeadingrivalsalesthisyearThehigheryourmarketshare,thehigherproportionofthemarketyoucontrol.MARKETGROWTHRATEMarketgrowthisusedasameasureofamarket’sattractiveness.MGR=Individualsales-individualsalesthisyearlastyearIndividualsaleslastyea

4、rMarketsexperiencinghighgrowthareoneswherethetotalmarketshareavailableisexpanding,andthere’splentyofopportunityforeveryonetomakemoney.THEBCGGROWTH-SHAREMATRIXItisaportfolioplanningmodelwhichisbasedontheobservationthatacompany’sbusinessunitscanbeclassifiedintofourcategories:StarsQuest

5、ionmarksCashcowsDogsItisbasedonthecombinationofmarketgrowthandmarketsharerelativetothenextbestcompetitor.STARSHighgrowth,HighmarketshareStarsareleadersinbusiness.Theyalsorequireheavyinvestment,tomaintainitslargemarketshare.Itleadstolargeamountofcashconsumptionandcashgeneration.Attempt

6、sshouldbemadetoholdthemarketshareotherwisethestarwillbecomeaCASHCOW.CASHCOWSLowgrowth,HighmarketshareTheyarefoundationofthecompanyandoftenthestarsofyesterday.Theygeneratemorecashthanrequired.TheyextracttheprofitsbyinvestingaslittlecashaspossibleTheyarelocatedinanindustrythatismature,n

7、otgrowingordeclining.DOGSLowgrowth,LowmarketshareDogsarethecashtraps.Dogsdonothavepotentialtobringinmuchcash.Numberofdogsinthecompanyshouldbeminimized.Businessissituatedatadecliningstage.QUESTIONMARKSHighgrowth,LowmarketshareMostbusinessesstartofasquestionmarks.Theywillabsorbgreatamou

8、ntsof