BCG Matrix
The Boston consulting group (BCG) Matrix is designed specifically to enchance a multidivisional firms efforts to formulate strategies.
The BCG Matrix allows a multidivisional organization to manage its portafolio of businesses by examining trhe relative market share position and the industry growth rate of each division relative to all other divisions in the organization.
The relative market share position is the ratio of a divisions own market share or revenues in a particular industry to the market share or revenues and its given on the x-axis of the BCG matrix. The y-axis represents the industry growth rate in sales.
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Questions Marks is refer that it has a low relative market share position, in this quadrant the firm should implement an intensive strategy like: Market penetration, market development or product development.
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Stars represents the organizatons best long-run opportunities for growth and profitability. The firm should implement strategies like: forward, backward and horizontal integration, market penetration or market development.
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Cash Cows means that it has a high relative market share position but compete in a low growth industry. The strategies that the organization should implement are product development or diversification.
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Dogs means that the organization has a low relative market share position and compete in a slow or no market growth industry. The organization should implement strategies like: retrechment, liquidate or divested.
