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The Bcg Matrix

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The Bcg Matrix
BCG Matrix
Opportunity - Threat Analysis

Submitted to: Professor Clyde
By : Parth Mithani
Roll No. 60
F.Y.M.M.S.
Alkesh Dinesh Modi Institute for Financial & Management Studies.

1) The BCG Matrix

The BCG / Growth-Share matrix is a model developed by the Boston Consultancy Group in the early 1970’s.
It is a well known tool for a marketing manager. It is based on the observation that a company’s business units can be classified into four main categories based on combinations of market growth and market share, hence the name growth-share matrix. Market growth represents the industry attractive attractiveness, and market share stands for competitive advantage. This helps the marketing manager allocate resources and is used as an analytical tool in brand marketing, product management, strategic management etc.
The basic idea behind the BCG matrix is that if a product has a bigger market share, or if the product's market grows faster, it is better for the company.
The 4 segments of the BCG matrix:₨

?
?
Market Growth
Market Share
Low
High
High
Low

1) Dogs:
These are products with a low growth and a low share of the market. Dogs are the cash traps. They do not generate cash for the company. A marketing manager should get rid of these products. 2) Cash Cows:
These are products with a high market share and low growth rate. They are often the stars of yesterday and they are the foundation of a company. They extract the profits by investing as little cash as possible. So a marketing manager’s role would be to keep such products in the portfolio for the time being. 3) Problem Children:
These are products with a low share of a high growth market. They consume resources and generate little in return. Most businesses start of as problem children. They absorb most money as you attempt to increase market share. Problem children have potential to become a star and eventually a cash cow but can also become a dog. 4) Stars:
These are products that are in high

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