Tuesday, March 12, 2013

BCG matrix quadrants


Stars. These are things which are characterized by vsoka market growth rate (high attractiveness) and high relative market share over the competition. These data show that the activities taking place in attractive markets to competition, and markets the company has a very strong position. Products belonging to the leading things usually are in the growth phase of the product life cycle curve. Best examples of Stars currently amazon.com lastminute.com which recorded high growth rates.
Question marks. These are things that are characterized by a high rate of growth in the market, but low relative market share. Are located in the upper right quadrant matrix growth and market share. Starting from the fact that it is a market with high growth rate, it can be concluded that these activities have a great need for funds. Products are found in this quadrant generally in the introduction phase of the product life cycle.
Cash cow. That it is positioned in the lower left quadrant of the matrix and are characterized by low growth and high market share. Given that it is a market with low growth rate, there is no need of large funds because the competition does not attract those markets, and therefore does not require major investments. Commercial products that are found in this quadrant typically operate in mature industries and products in this quadrant are typically found in the mature phase of the product life cycle.
Dogs. That it is positioned in the lower right quadrant are characterized by low growth and low market share. The low growth rate of the market means that no great need of funds, and on the other hand, it means that the market loses its appeal and no major competition. Products in this quadrant are in the phase-out of the product life curve.

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