A characteristic feature is the relatively low market share in the slowly growing segment. It’s sales revenues should go to the development of "stars" or "wild cats". They are the main generator of money and do not need high investment. Goods with a relatively high market share in the slowly growing segment. The best resources should be allocated to them because it is a stable source of profit. The task of the enterprise is to support and strengthen these products. Business directions and products are leaders in a fast-growing market. The product does not develop without cash injections.
The enterprise decides whether it has sufficient funds for the development of this assortment group or division if these directions fall into this quadrant. Products represented in fast-growing industries, but having a low market share., You need significant financial investments to strengthen their position in the market. You can make a decision on the basis of the received data: what assortment group (division) to develop, and which of them needs to be liquidated.Īll the analyzed elements go into one of four quadrants after the analysis work: With the help of the BCG matrix, it is possible to quickly identify the most promising and the "weakest" goods (branches, companies). The presence in the segment with a low growth rate allows the company to reduce this expense item. An enterprise needs to invest a lot in the development of its product to work effectively in a fast-growing market.Consequently, the leading company has the highest profitability in the segment.
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