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Swot Analysis : Bcg Matrix

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Planning Techniques Below is a description of two planning techniques. The first one is BCG matrix followed by SPACE matrix. BCG matrix This matrix’s name stands for Boston Consulting Group and it’s a framework, which is used as a planning tool that helps organisations evaluating the strategic position of the business’ brand portfolio and their potentials. It classifies business portfolio into four categories based on industry attractiveness and competitive position. The BCG matrix’s purpose is to help an organisations having better understanding about in which of their brands they should invest and in which they should not be investing or invest less. There are 4 categories of BCG matrix: dogs, cash cows, stars and question marks. Dogs- compared with competitors, they hold low market share and operate only in a slow growing market. Thus they are worthless in investing as they generate low cash returns. However in some cases dogs can be profitable for a long time term. Cash cows- these are the most profitable brands. According to growth/share matrix firm should not invest into growth of cash cows but only to support them to maintain market share. Cash cows can be large corporations that are being capable of producing new products that become stars. Stars- operate in high growth industries and maintain high market share. They are both cash generators and cash users. These are the primary users in which the company should invest in because they are expected to become

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