Bcg matrix

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Bcg matrix

  1. 1. Presented byAmrutha M. S.
  2. 2. Introduction Portfolio planning model developed by Bruce Handerson in the early 1970’s Helps to evaluate the industry growth and the relative position of a firm in the industry. An increase in market share results in generation of cash. Growing market requires investment in assets to increase capacity. Matrix classifies the business of a firm in to four distinct categories. The two parameters are market growth and market share.
  3. 3. The four categories are Stars Cash cows Question marks Dogs
  4. 4. Stars(=High growth , high market share) Net users of resources Generate large amounts of cash Consumes large amounts of cash Can become the market leader if it maintains its large market share Become a cash cow when the market growth rate declines
  5. 5. Cash cows (=low growth, high market share) Net generator of resources Brings higher profits Does not need heavy investment Provides cash to turn question marks in to stars
  6. 6. Question marks (=high growth ,low market share) Net users of resources Future is uncertain High market growth and consumes large amount of cash Low market share Has the potential to gain market share and become star Becomes cash cow if market growth decline
  7. 7. Dogs (=low growth, low market share) Low market share Low growth rate They are the cash traps Neither generate nor consumes large amount of cash
  8. 8. BCG MATRIX

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