Bcg Matix

Placing products in the BCG matrix results in 4 categories in a portfolio of a company BCG STARS ( postgraduate growth, high merchandise shargon) Stars be defined by having high trade deal out in a growing market. Stars are the leaders in the business but still deficiency a lot of support for advance a placement. If market share is kept, Stars are likely to grow into silver cows. BCG QUESTION MARKS (high growth, low market share) These products are in growing markets but make believe low market share. Question mark are essentially new products where buyers have merely to discover them. The marketing strategy is to repulse markets to adopt these products. Question marks have high demands and low returns due to low market share. These products need to increase their market share quickly or they become dogs. The crush way to handle Question marks is to either invest heavy in them to gain market share or to sell them.BCG interchange COWS (low growth, high market sh are) gold cows are in a position of high market share in a mature market. If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. Because of the low growth, promotion and placement investments are low. Investments into supporting infrastructure place improve expertness and increase cash flow more(prenominal). Cash cows are the products that businesses get to for. BCG DOGS (low growth, low market share) crosss are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help. And now, lets put all this into a picture Main Steps of BCG ground substance * Identifying and dividing a company into SBU. * Assessing and comparing the prospects of each SBU according to cardinal criteria 1. SBUS relative market share. 2. Growth rate OF SBUS industry. Classifying the SBUS on the basis of BCG matrix.* Developing strategic objectives for each SBU. Benef its * BCG MATRIX is simple and easygoing to understand. * It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you feces make the most of them. * It is used to identify how corporate cash resources can best be used to maximize a companys future growth and profitable too Limitations * BCG MATRIX uses only two dimensions, Relative market share and market growth rate. * Problems of getting entropy on market share and market growth. High market share does not mean profits all the time. * Business with low market share can be profitable too BCG analysis Unilever kick STATEMENT * Unilevers mission is to add Vitality to life. We meet everyday call for for nutrition hygiene and personal care with brands that help people line up hot, look good and get more out of life. From sumptuous soups to esthetic soaps, our products all have one thing in common. They help you get more out of life. Brands Cooking & eating Let our culinary experts shore pleasure to your palate. Healthy living Let us make the robust choice your easy choice. Beauty & styleWe want to help you feel good about yourself. Around the house Hints to make your household chores that little more manageable. BCG Analysis Chart for Unilever Portfolio Cash Cows Stars Products Question Marks Dog Products Decisions after Analyses BCG * Build Market Share Make further investments (for example, to adjudge Star status, or turn a Question Mark into a Star) * Hold Maintain the status quo (do nothing) * Reduce the investment (enjoy positive cash flow and maximize profits from a Star or Cash Cow) * Get rid of the Dogs, and use the capital to invest in Stars and whatever Question Marks.