BOSTON CONSULTING GROUP
MARKET GROWTH If the sales revenue in a particular market rises from 100 million to 110 million, the market is said to have experienced 10% growth
MARKET SHARE If sales revenues for a business are $100 million in an industry that is worth a total of 400 million, then the firm’s market share is 25% Market share= (100/400)x100
Product portfolio analysis Mitsubishi, the japanese multinational company, has a product portfolio that includes products as diverse as motor vehicles, consumer electronics and pens etc Product portfolio analysis allows a business to decide which products should receive more or less investment. Boston consulting group looks at 2 dimensions: market growth and market share
MATRIZ BOSTON CONSULTING GROUP
BOSTON CONSULTING GROUP MATRIX Dogs: are products with a low market share operating in a low growth market. Dogs do not generate much cash for the business as the market tends to decline. Firms that have too many products in this quadrant find that there is a lack of cash for the business
BOSTON CONSULTING GROUP MATRIX Problem child: (?) refers to the product that operate I a high market grow sector, but have a low market share The product can represent inferior product quality or marketing to those of competitors
BOSTON CONSULTING GROUP MATRIX Starts: are products that operate in high growth markets and have high market share Starts are highly successful products that tend to generate high amounts of cash for a business Businesses will tend to invest money in developing and promoting their starts
BOSTON CONSULTING GROUP MATRIX Cash Cows: are products with high market share operating in a low growth market Extension strategies