What are the four categories of BCG matrix?

What are the four categories of BCG matrix?

The BCG growth-share matrix contains four distinct categories: “dogs,” “cash cows,” “stars,” and “question marks.”

What is cash cow in BCG matrix?

A cash cow is a reference to a business, product, or asset that produces consistent cash flow over its lifespan; it’s also a reference to one of the four quadrants in the BCG Matrix, a business unit organization method.

What is Portfolio Matrix Strategy?

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or develop products. It’s also known as the Growth/Share Matrix.

What is a cash cow in marketing?

a product or strategic business unit within the organisation’s mix which is characterised by high market share and low market growth; a Cash Cow produces the revenue required to develop and support less successful or newer products.

What is cash cows and dogs?

When industry growth slows, if they remain a niche leader or are amongst the market leaders, stars become cash cows; otherwise, they become dogs due to low relative market share. As a particular industry matures and its growth slows, all business units become either cash cows or dogs.

What does cash cow mean?

Definition of cash cow 1 : a consistently profitable business, property, or product whose profits are used to finance a company’s investments in other areas. 2 : one regarded or exploited as a reliable source of money a singer deemed a cash cow for the record label.

What is the BCG matrix of Coca Cola?

BCG Matrix of Coca Cola contains the Dogs, Stars, Cash Cows, and the Question Mark. In this reading of the BCG Matrix of Coca Cola, we will analyse the company’s low growth products, products that attract sales, high growth products, and products that may attract sales or may become low growth products in future.

Why is it called a cash cow?

The term cash cow is a metaphor for a dairy cow used on farms to produce milk, offering a steady stream of income with little maintenance. By generating steady streams of income, cash cows help fund the overall growth of a company, their positive effects spilling over to other business units.

What is the best strategy for a cash cow?

Prioritize. The role that your cash cow plays in your overall business strategy will depend on your priorities. If you want to make as much money as possible, direct your resources and your energy toward maximizing its sales, using other products and services primarily to support it and flesh out your line.

What is the product portfolio matrix?

The product portfolio matrix, also called growth–share and BCG matrix, wants to help you achieve the right blend of young and established products in order to maximise the overall value a portfolio creates. The matrix categorises products as question marks, stars, cash cows, and pets (also known as dogs ).

What is the BCG matrix (growth share matrix)?

In the 1970s, Bruce D. Henderson, founder of the Boston Consulting Group, came up with The Product Portfolio (aka BCG Matrix, or Growth-share Matrix), which would look at a successful business product portfolio based on potential growth and market shares.

What is the relationship between the quadrants of the portfolio matrix?

The quadrants of the portfolio matrix form an interesting relationship: Products start out as question marks. If they are to become successful, they must develop into stars and then morph into cash cows. Both development steps require effort, time, and money.

What does a good product portfolio look like?

When you apply the product portfolio matrix to the offerings in an established company, you’d like to see a healthy, balanced portfolio with enough question marks and stars that have the potential to become cash cows.