Boston Consulting Group Model Categories
Added on -2020-02-18
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Running head: MARKETING AND MANAGEMENTMarketing and ManagementName of the StudentName of the UniversityAuthor note
1MARKETING AND MANAGEMENTBoston Consulting Group Model categoriesBoston Consulting Group Model (BCG Model) is a portfolio planning model that isfounded on the deduction that a company’s business units could be characterized into fourcategories:Question MarksStarsCash CowsDogs1.Dogs – These products hold a low market share or possess and low growth in the market.Generally, they are of no use investing as the generate low cash returns. However, somedogs might be profitable if continued for a long period of time. Thus it is important thatdeeper analysis is performed of each brand or SBU for ensuring they are unsuitable forinvestment or needs to be divested (Stern and Deimler 2012).Strategic choices: liquidation, divestiture, retrenchment2.Cash cows – Cash cows contain the most productive brands and they need to be “milked”so that as much cash can be extracted from them possible. These products play in lowgrowth markets but possess high market share. Corporates must invest in cash cows forinducing growth and supporting them in continuing their current market share (Kiron etal. 2013).Strategic choices: divestiture, retrenchment, diversification, product development
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