Ansoff matrix explained how to#

Star productsД¬anВ be the market leader though require ongoing investment to sustain. Despite a serious amount of investment, it flopped and failed to compete against the established players such as Apple and Samsung.

For example, Amazon (see the Amazon business model)developed the Firephone but failed to gain traction in the smartphone market. The challenge is that a lot of investment may be required to get a return. Question mark productsДЄs the name suggests, these products often require significant investment to push them into the star quadrant. After SAAB ceased trading and producing new cars, a whole business emerged providing SAAB parts. For example, in the automotive sector, when a car line ends, there is still an after-market i.e. However, this can be an over-simplification since itвЂ™s possible to generate ongoing revenue with little cost. The recommended advice is to remove any dogs from your product portfolio as they are a drain on resources. Think of the BCG Matrix as mapping a portfolio of products or services. In other words, eighty per cent of profits come from twenty per cent of the products and therefore the BCG matrix provides a method to analyse your portfolio and decisions. The BCG is more relevant to larger organizations with multiple services and markets.В However, smaller businesses that have a broad range of products can use this to analyse their products. Each quadrant represents a relative position basedВ on market growth and relative market share.

ItвЂ™s also known as the Growth/Share Matrix. The Boston Consulting GroupвЂ™s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

Ansoff matrix explained how to#

Stars:В Products in high growth markets with high market share.Д¬ash cows:В Products in low growth markets with high market share How to use the BCG Matrix model Question marks or Problem Child:В Products in high growth markets with low market share. THE BCG Matrix What are the four quadrants of the BCG Matrix?Дogs:В These are products with low growth or market share.