![]() ![]() The players each try to grab market share from other competitors. Indeed, in the mature stage, growth, the intensity of competition may still be tight. If the investment is successful, the company still keeps a strong position as it reaches a slow growth phase (mature stage). That way, the star continues to dominate the market in the long run, at least until the market reaches a mature stage. Management should develop more effective distribution, build loyalty, and add features to maintain their continued appeal. This category is usually the focus of the company. Despite the high revenue, but, it also consumes high costs to maintain its position.Ĭompanies must invest and design effective marketing and advertising strategies. So, unlike the cash cow category, the company may not reap the considerable cash flow from the star category yet. Competitors may adopt aggressive and effective strategies to shift its position. The high market growth indicates its position is still vulnerable. A large market share means that the star has a strong market position and generates a high volume of sales.īut, the star also requires a significant investment. The star category provides a substantial revenue stream. In a broader application, the matrix is also useful for business unit management. It tells how the company should focus on strategy and investment in managing its product portfolio. The BCG matrix becomes a tool helping to develop strategies. Two variables you will need to create a BCG matrix: market share and market growth. The more reasonable option is to stop or divest this category. Dog – a product that has a low market share and is in a low-growth market.The strategy’s primary focus is to increase market share and shift the position of the current market leader. But, it requires a higher investment than the star category. This category, indeed, still has the potential to become the next cash cow. Question marks – a product with a low market share and operating in a high growth market.Hence, a cash cow is a potential source of cash in for the company. This category has successfully dominated the market and requires relatively little investment. Cash cow– a product with a large market share and being in a low-growth market (mature stage).It is one of four categories in the Boston Consulting Group Matrix (BCG matrix). What’s it: A star is a product with a significant market share and is in a high-growth market.
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