With proper investment, you can convert question mark SBU to star SBU. Question marks represent a high market growth rate but still a low market share part of the matrix.Įven though the SBU has a low market share, they still need huge investments because they belong to a market that is growing fast. What are Question Marks in the BCG Matrix? Related: How to Use Swot to Create a Powerful Digital Marketing Strategy? As these SBUs belong to a market that is fast-growing, they require heavy investment to match the growth rate.Īfter these star products have reached maximum growth, they turn into cash cows. Stars represent those SBUs that have a high market share and high market growth rate. The four categories of the BCG matrix are question marks, stars, dogs, and cash cows. What are the Four Categories of the BCG Matrix? Market growth implies how attractive that market and industry are and your market share determines your position in that market /industry. Click To TweetīCG Matrix Strategy for business growth is widely adopted to help a business consider growth opportunities.
A long time ago, they have come up with a matrix to ease the process of strategic planning for a company.īCG is a growth-share matrix where the vertical axis represents the market growth rate and the horizontal axis represents relative market share. What is a BCG Matrix/Growth-Share Matrix?īCG stands for Boston Consulting Group. When we have more than one product/service to offer, sometimes it gets difficult to figure out which SBU to prioritize over others, which SBU is more desirable and profitable than others, and in which SBU to invest more? To deal with those situations, we use the BCG Matrix. In broader terms, SBU can have company divisions, products within one division, or just a single product.
The fully-functional, independent products and business lines within a business are known as SBU or strategic business units. 8.1 The Stories of Deadly Business Mistakes That 99% of the Businesses Make
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