example of stars category in the bcg matrix

The goal is to try to generate short-term profits from the product regardless of the long-term impact on its survival. When a company decides to harvest a product, the firm lowers its investment in it. When a firm pursues this strategy, it only invests what it has to in order to maintain the product’s market share. Holding market share means the company wants to keep the product’s share at the same level. With the success sequence, money is taken from cash cows (if available) and invested into question marks in hopes of them becoming stars. The success sequence is often used as a means to help question marks become stars. Many companies invest in question marks because market share is available for them to capture. One strategy is to build market share for a business or product, especially a product that might become a star. Depending on the product, a firm might decide on a number of different strategies for it.

The BCG matrix helps managers make resource allocation decisions once different products are classified. As a result, they keep producing products and services they shouldn’t or invest in dogs in hopes they’ll succeed. However, some companies are hesitant to classify any of their products as dogs. Dogs do not make much money and do not have a promising future.

A dog is a product with low growth and low market share. Dogs are often the first assets to be sold off.In business, it is not good to be considered a dog. Dogs – These are low market share assets that show low growth rates. Cash cows – These are high market share assets in a slowly growing market.

Stars – These are high market share assets in a quickly growing market.

Question marks – These are high growth rate, low market share assets. List out every product or service you offer, then arrange them into the following four categories: Wondering how to use a BCG matrix? The process is simple. Created by the Boston Consulting Group (hence the name), the BCG matrix offers a way to view all of your product ideas in one place and prep for a total market takeover to give you a competitive advantage as a market leader. The BCG matrix (also called a growth share matrix) is a tool that allows you to make the most of your business plans, marketing strategy, and assets by calculating their market growth and market share.

Example of stars category in the bcg matrix