Meaning
Assumption
Dogs
Question marks
Stars
Cash cows
Limitations
The factors and their relative weightings are selected. The rating values
for each factor are entered for each SBU and Industry.
Strong
Average
Weak
High
Grow
Grow
Hold
Medium
Grow
Hold
Harvest
Low
Hold
Harvest
Harvest
Grow Business units that fall under grow attract high investment.
Firms may go for product differentiation or Cost leadership. Huge cash is
generated in this phase. Market leaders exist in this phase.
Hold Business units that fall under hold phase attract moderate
investment. Market segmentation, Market penetration, imitation strategies
are adopted in this phase. Followers exist in this phase.
Harvest -
Business units that fall under this phase are unattractive. Low
priority is given in these business units. Strategies like divestment,
Diversification, mergers are adopted in this phase.
Business units competitive position consists following positionsStrong, Average and Weak
AVERAGE
WEAK
------------------------------
DEVELOPMENT
------------------------------
STAGE OF
RAPID GROWTH /
TAKE-OFF
INDUSTRY / MARKET
-----------------------------SHAKE-OUT
EVOLUTION
-----------------------------MATURITY /
SATURATION
-----------------------------DECLINE /
STAGNATION
-----------------------------ONLY ONE DIMENSION IS DIFFERENT FROM THE GE BUSINESS SCREEN
Except for the Stage of Market Evolution, this model is identical to the GE Business Screen
Hofers Matrix