![]() A high market share does not necessarily lead to profitability all the time.There is no clear definition of what constitutes a “market”.The problems of getting data on the market share and market growth.Sometimes Dogs can earn even more cash as Cash Cows.Market growth is not the only indicator for attractiveness of a market.High market share is not the only success factor.It neglects the effects of synergies between business units.Once it becomes a star, it is destined to be profitable. If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell new products at a price that is low enough to get early market share leadership.It provides a base for management to decide and prepare for future actions.The model is simple and easy to understand.BCG-Matrix is applicable to large companies that seek volume and experience effects.The BCG-Matrix is helpful for managers to evaluate balance in the companies’s current portfolio of Stars, Cash Cows, Question Marks and Dogs. ![]()
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