BCG Matrix

BCG MATRIX
Developed by Bruce Henderson of the Boston Consulting Group in
1970s
Products are generally classified on the parameters of market share &
market growth rate
This technique has been employed to businesses also
However it is more suitable to apply the same to individual products

DOGS
DOGS operate in slow growth markets and hold low market
share as opposed to rivals
Generally not worth investing cause of negative or low cash
returns
Some DOGS may be profitable as they act as feeders to other
brands or even become the flankers

Strategies- Retrenchment, Divestment & Liquidation

CASH COWS

They are foundation of the

company and often the stars
of yesterday.
Most profitable brands and
need to be milked
Cash gained from a CASH
COWS needs to be invested
into STARS
Corporates need not invest
further; they only need to
support the COW

STARS

Stars have high growth rate and high market share.

They are both cash generators as well as cash users

In order to maintain the large market share, heavy investment is

required cause STARS are expected to become CASH COWS

Technical Innovations may even turn a STAR into a DOG

Strategies-

Vertical

Integration,

Penetration, Market Development

Horizontal

Integration,

Market

QUESTION
MARK
Require maximum consideration
Hold low market share in a fast
growing market
Tend to consume large amounts
of cash in fast moving markets
QUESTION MARKS have
potential to become star and
eventually CASH COW but can
also become a DOG

Strategies- Market Penetration,

Market Development, Product
Development, Divestment

BCG OF PEPSICO
RELATIVE MARKET SHARE

STARS

????

CASH
COWS

DOGS

MARKET
GROWTH
RATE

Vanilla Coke

Deepika Padukone

Premier Padmini

Good Knight

Sir Ravindra Jadeja

Ford Ecosport

Sony Play-station 1

3 Brands