| 
 UID144728 帖子14 主题15 注册时间2016-4-15 
 | 
 BCG Matrix
| ACCA P3考试:BCG Matrix 1. Objectives
 In 1972, the Boston Consulting Group (BCG) designed a method of strategic analysis to:
 Assess the relative strength of individual products and a company's portfolio; and
 Advise on product strategy.
 2. Measures
 The matrix technique uses two measures to determine what makes a "good" product:
 a. The rate of growth of the market for the product
 b. The relative market share achieved by the company's product
 2.1 Cash cow
 ? High relative market share in a low-growth market.
 ? Large positive cash flows.
 ? Product life cycle is in maturity or decline stage, so the market is less attractive to new entrants and existing competition.
 2.2 Star
 ? High relative market share in a high-growth market.
 ? May be only cash neutral as large amounts of cash may need to be spent to defend an organization’s position against competitors.
 ? Competitors will be attracted to the market by the high growth rate.
 2.3 Problem child
 ? Low market share in a high growth market means these are cash users but have prospects if market share is increased (requires investment).
 ? Large negative cash flows.
 2.4 Dog
 ? Low relative market share in a low-growth market.
 ? Tends to have ongoing negative cash flow.
 ? It is unlikely to take market share from competitors.
 ? Competitors, having the advantage of larger market shares, are likely to fiercely resist any attempts to reduce their share of a low-growth or static market.
 | 
 |