But which is a market reference and remains in balance with the cash flow ; The Question (or Doubt) : requires high investments, but has a low return on the resources invest; The Cash Cow : generates a lot of profit with little investment; And Pineapple : it generates very little profit and has nowhere to grow in the market. Using these quadrants, it is easy to visualize: The possibility of market growth for such products or services (the axis from bottom to top, from smallest to largest).
Pineapple peeler for those who
And the market share (from right to left, also from lowest to highest). I imagine you’ve already gain insights just by reading my explanation so far, but it’s not over yet: we ne to talk about the life cycle ! The life cycle of products or services The fact that the BCG Matrix is a simple graph makes it obvious which phase of the life cycle a product or service is in: If it is emerging now; If it is already ripe; Or if it is in decline. This clarity gives way to more Latest database assertive decision-making for each phase: Providing constant growth ; Maximizing the value of Dairy Cows; Rucing errors caus by impulsiveness.
Increase the returns on your investments
Dining tables Desks, for example, have a moderate market share but a low growth rate. We could classify them as a Doubt or Question in the BCG Matrix. Cabinets With a low market share and high growth rate, cabinets would definitely be the Stars ! Chairs Chairs would be the Cash Cows in the BCG Matrix because they have a moderate market SGP Pone List share and a moderate growth rate. Bookcases Lastly, shelving could be a Pineapple , since the market share is low and so is the.
