This service was a cash cow segment for the supplier, there was no scope for further growth, but they had a large market share. A vendor was supplying food a couple of years back. The market is saturated with existing competitors (stars or cash cows), and chances are low to grow or beat the competition.įor example, consider the IRCTC (Indian Railways Catering and Tourism Services) case. Products or services in the dogs’ quadrant have a low market share with no potential growth.
Stars are prized possessions and are at the top of the portfolio.
No investment in this segment will allow competitors to tap into the market.Īs the markets mature, stars can become cash cows. Businesses should get funds from cash cows and invest in this segment to increase their market share to stay competitive. Products or services in the stars quadrant have a high market share, and the market has further growth potential. Failing to do so can turn the question mark segment into a dog segment. Ideal scenario: The business must attempt to turn the question mark segment into a star segment. The business must get funds from the cow segment to turn a question mark into a star (to increase the market share). Products or services in the question mark quadrant have a low market share, but the market is growing quickly and has the potential to grow further. Cash Cows – Products or services with a high market share but a low market growth.Dogs – Products or services with low market share and low growth.Stars – Products or services with high market growth and a high market share.Question Marks – Products or services with high market growth but a low market share.The higher the growth rate, the higher the competition to stay relevant in the market.
The vertical axis represents the potential growth rate of a product in the market. More market share means the product or service has a better reach to customers than competitors. The horizontal axis of the BCG Matrix represents the market share of the product.
0 kommentar(er)
