BCG Matrix Presentation by Khalid Mirza
BCG Matrix Presentation by Khalid Mirza
BCG Matrix Presentation by Khalid Mirza
Market Share
Market share is the percentage of the total market that is being
serviced by your company measured either in the revenue terms or
unit volume terms.
The higher your market share, the higher
proportion of the market you control.
RELATIVE MARKET SHARE & MARKET GROWTH
Stars generate large amounts of cash because of their strong relative market share, but
also consume large amounts of cash because of their high growth rate.
Question marks are growing rapidly and thus consume large amounts of cash, but
because they have low market share they do not generate. Resources should be
invested in them to enhance their competitive positions.
Cash cows are with high market shares in low-growth industries. These units have limited
long-run potential but represent a source of current cash flows to fund investments in
“stars” and “question marks”.
Dogs are with weak market shares in low-growth industries. Because they have weak
position and limited potential, most analysts recommend that they be divested
Product Life Cycle
BCG MATRIX
BENEFITS
BCG matrix is simple & easy to understand
It helps to quickly & simply screen the opportunity open to you, & help you
think about how you can make the most of them.
It is used to identify how corporate cash resources can best be used to
maximize company’s future growth & profitability.
Thank You