Question mark examples: Mac Book Air of Apple, FUZE Healthy Infusions of Coca-Cola, tablet from Philips. New assets enter the market as Question Marks. Question marks need to be analysed carefully to determine if they are worth the investment required to grow market share. Question marks are products that grow rapidly and as a result, consume large amounts of cash, but because they have low market shares, they don’t generate much cash.
Cash cows – Low Growth, High Market Share (most profitable).Stars – High Growth, High Market Share (high competition).Dogs – Low Growth, Low Market Share (less profitable).Question marks – High Growth, Low Market Share (uncertainty).The BCG growth-share matrix breaks down products into four categories: The BCG matrix has two dimensions: relative market share (indicating profitability, through economies of scale) and market growth rate (indicating market attractiveness). The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits. The Boston Consulting Group (BCG) Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range. It is also referred to as the BCG growth-share matrix.
The Boston Consulting Group (BCG) Matrix is a portfolio management tool created in 1970 by Bruce Henderson.
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