Understanding the BCG Matrix

What is the primary purpose of the BCG Matrix?

• To assist in strategic planning and resource allocation.

• To evaluate employee performance.

• To analyze customer satisfaction levels.

• To determine market share only.

How do Cash Cows contribute to a company's revenue?

• Cash Cows are only relevant in the startup phase of a business.

• Cash Cows primarily focus on reducing costs for the company.

• Cash Cows do not generate any cash flow for the company.

• Cash Cows contribute to a company's revenue by generating excess cash flow that can be reinvested or distributed.

What characteristics define Question Marks in the BCG Matrix?

• Low market share in a low-growth market, requiring minimal investment.

• Low market share in a high-growth market, requiring investment and having uncertain potential.

• High market share in a high-growth market, indicating stability.

• High market share in a low-growth market, indicating strong potential.

Why are Dogs considered a less favorable position in the BCG Matrix?

• Dogs have high market share and high growth potential.

• Dogs are the most profitable segment in the BCG Matrix.

• Dogs are favored for their strong brand loyalty.

• Dogs are considered less favorable due to low market share and low growth potential.

What strategic actions can a company take based on its BCG Matrix analysis?

• Invest in Stars, maximize Cash Cows, evaluate Question Marks, and divest Dogs.

• Eliminate all Cash Cows

• Focus solely on Question Marks

• Increase investment in Dogs