3. • Our product is in the current market, it can
still grow.
1. Encourage current customers to buy more.
2. Attract competitor's customers.
3. Convince non-users to use the product.
4. • When the current product is launched in a
new market, there are three approaches to
develop the market:
1. Expand distribution channels.
2. Sell in new locations.
3. Identify the potential users.
5. • When a new product is
launched in the current
market, the intensive
growth strategies could be
to:
1. Develop new features.
2. Develop different quality
levels.
3. Improve the technology.
6. • Diversification with new products launched on new
markets can be achieved by:
• 1. Concentric Diversification Strategy: Developing new
products for new market segments using the earlier
technology. That is called concentric diversification
strategy.
• 2. Developing new products for new markets in a
conglomerate diversification strategy.
• 3. Developing new products for old customers, using
new technology. This is called horizontal diversification
strategy.
7.
8.
9.
10. • Most business start of as question marks
• They will absorb great amount of cash if the
market share remains unchanged (low)
• Question marks have potential to become star
& evenly cash cow but can also become dog.
• Investment should be high for question marks.
11. • Stars are leader in business
• They also require heavy investment to maintain
it’s large market share.
• It leads to large amount of cash consumption &
cash generation.
• Attempts should be made to hold the market
share otherwise the star will became a cash cow.
12. • They are foundation of the company & often
the stars of yesterday.
• They generate more cash than required
• They extract the profits by investing as little
cash as possible
• They are located in an industry that is mature
not growing or declining
13. • Dogs are the cash traps
• Dogs do not have potential to bring
• High cost – Low quality
• Business is situated at a declining stage
14. benefits
• BCG matrix is simple & easy to understand
• It helps to quickly & simply screen the
opportunity open to you, & help you think
about how you can make the most of them.
• It is used to identify how corporate cash
resources can best be used to maximize
company’s future growth & profitability.
