Boston Consulting Group (BCG) is a management tool which categorizes the product portfolio with four different labels such as star, Dogs, Cash cows and question marks. Here BCG tool is used to determine the market growth and market share of Motorola.
Labels in BCG tool refer to:
- Stars- High market growth and share
- Dogs- Low market growth and share
- Cash flow- Low market growth and high market share
- Problem child- High market growth and low market share
Figure shows Boston Matrix
Initially Motorola was a star that means it attained high market growth and high market shares because of low competition. But in recent times, it fell in problem child area i.e, high market growth and low market share due high competition from new entrants.
BCG matrix is to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories. For understanding this, BCG Matrix Examples / Resources are essential.
ReplyDelete