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BCG MATRIX Market-Growth/Market-Share Matrix A strategic planning tool based on the philosophy that a product’s market growth rate and market share are important in determining marketing strategy Factors determining SBU/product’s position within a matrix Product-market growth rate Relative market share

Growth-Share Matrix Developed by the Boston Consulting Group:

Growth-Share Matrix Developed by the Boston Consulting Group Source: Perspectives, No. 66, “The Product Portfolio.” Reprinted by permission from The Boston Consulting Group, Inc., Boston, MA. Copyright © 1970. FIGURE 2.3

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BCG Classification Star — high growth market, dominant market share requires additional resources for continued growth Cash cow —low growth, dominant market share generates surplus resources for allocation to other SBUs Dog —low/declining market, subordinate market share has diminished prospects and represents a drain on the portfolio Question mark —high growth market, low market share represents a high-risk/cost opportunity requiring a large commitment of resources to build market share

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