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BCG Matrix

来源: 正保会计网校 编辑: 2015/10/09 09:44:32 字体:

ACCA P3考试:BCG Matrix

1. Objectives

In 1972, the Boston Consulting Group (BCG) designed a method of strategic analysis to:

Assess the relative strength of individual products and a company's portfolio; and

Advise on product strategy.

2. Measures

The matrix technique uses two measures to determine what makes a "good" product:

a. The rate of growth of the market for the product

b. The relative market share achieved by the company's product

2.1 Cash cow

• High relative market share in a low-growth market.

• Large positive cash flows.

• Product life cycle is in maturity or decline stage, so the market is less attractive to new entrants and existing competition.

2.2 Star

• High relative market share in a high-growth market.

• May be only cash neutral as large amounts of cash may need to be spent to defend an organization’s position against competitors.

• Competitors will be attracted to the market by the high growth rate.

2.3 Problem child

• Low market share in a high growth market means these are cash users but have prospects if market share is increased (requires investment).

• Large negative cash flows.

2.4 Dog

• Low relative market share in a low-growth market.

• Tends to have ongoing negative cash flow.

• It is unlikely to take market share from competitors.

• Competitors, having the advantage of larger market shares, are likely to fiercely resist any attempts to reduce their share of a low-growth or static market.

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