Resource Allocation


In most cases, a business has more than one product. A product isn't only a physically tangible thing, but anything of value that satisfies and meets the customer's needs that a business offers.

With multiple products, a business needs to decide how to strategically allocate resources to each. The BCG Growth-Share Matrix provides a strategic framework businesses can use to make this decision.

The BCG's Growth-Share Matrix uses relative market share and the rate of market growth to classify products into stars, cash cows, question marks, and dogs.

  • Stars: Products placed within this category have high market share and high market growth. A business needs to prioritize investments in them.
  • Cash Cows: These are products with high market share but low market growth. A business needs to enjoy their current profitability without heavy investment.
  • Question Marks: Products with low market share but high potential for growth. A business needs to monitor them carefully before deciding to much invest in them.
  • Dogs: Products with low market share and low market growth. A business needs to stop investing in dogs.

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