GENERATING ALTERNATIVE STRATEGIES USING PORTFOLIO MODELS (BCG)


🌻BCG matrix is a corporate planning tool which is used to portray firm's brand portfolio or strategic business unit (SBUs) on a quadrant along relative market share axis and speed of market growth axis.

🌻Growth-Share matrix is a business tool, which users relative market share and industry growth rate factors evaluate the potential of business brand portfolio and suggest further investment strategies.




🌻 Relative market share : One of the dimensions used to evaluate business portfolio is relative market share. Higher corporate's market share results in higher cash returns. 

🌻Market growth rate : Higher market growth rate means higher earnings and sometimes profits but it also consumes lots of cash, which is used as investment to stimulate further growth.

🌟  The Star:
  • Rapid growth and expansion.

❓  The Question Mark:
  • New Ventures
  • Risky
  • Few become stars, other divested. 

🐄  The Cash Cow:
  • Ability to fund the Question Marks and Stars.
🐕    The Dog:
  • Low market share and growth consider divestment.









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