p Unit 4:

UP (BCG)
(B&G)
Growth-Share Matrix
Matrix
n e B o s t o n C o n s t

Growth-Share Matrix is a
metho GrOwth-share B.1.Other
n e r e

r
cG
chprou
e a c h

c o r
roduct is in its life cycle. It
p o r a t i
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s
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ocation
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BCG those markets. The better 1970s to
her
share

e t )a x i s a n d r e
o fth
market share is display two-by-two grid Marketgrowth of the
decisions about
share scale ither high or low along the growth rate market s they are in
dicates itshorizontal
orizontal
marked
is
eutive
fe market owth rate Scale, either high or low, indicates cash (top) axis. A shown on the and
its needgeneration product' s
capabil ty andand postion
for cash capabillty
vertical
o the
on
its for
investment. position on
BCG GROWTH-SHARE MATRIX
Relative Market Share
(Cash Generation)
HIGH
LOW
STAR
QUESTION MARK

DOG
CASH coW

and tthus
rate,
growth growing

tar
market
rapidly
is with a
high leads to
a ases

rOduct product
growth
g rowth

is with a high market share in Robust

support
t
m ar
rk

for
ke
ett investment.

and that capable of generatin substantial

revenue.
working
capital
to
levels
of
cash

growth inandturn o
unts receivable need for
increased high r e q u i r e s

become
a
casn

itwill
product c o m p a n y

Therefore, a s The
a inventory. rate
declines,

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generation.

growth increasing
cash
then
Whena high
aintain market share wher
n e
m n a

can
r k e t '

e
s

n s u r e
future

market
share
and

claim has
a
products
naged properly, star it to
CSdecreasing p r o d u c t

mirice of a star
groW
ow.
but
the question

enue as theproduc
several p o p u l a r i t y

ral
rate,
so
the

ion mark and rapidly,

growth
share growth
market
product's m a r k e t

also
grow generated

arket
cash

a high
sales

Is a the
that has S U o n
share. In product
m a r k ' s

udu in an industry
c O W

e r s e l y ,

c a s h

a a in

apidly growing Du
problematic
eventually
nsume
ow because a great deal of cash for
investment
h e n

the
product
Is
and 217
of its low star
mark has po market share. become
a
stion-
mark

owth rate
rat potential
of
to gain market the
share
and
present,
a qu Resale
prohilbiled

the market slows. But f o r

H O C K

mar Aythorization
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ith 4