BCG MATRIX.docx - BCG MATRIX ON GARDENIA BCG Matrix was...

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BCG MATRIX ON GARDENIA BCG Matrix was developed based on a company’ s business units or product can be classified into four categories based on combinations or market growth and market share relative to the largest competitors. A. CASH COWS Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that have a high market share but low growth prospects. Cash cows provide the cash required to turn question marks into market leaders, cover the administrative costs of the company, fund research and development, service the corporate debt, and pay dividends to shareholders. Companies are advised to invest in cash cows to maintain the current level of productivity. In Gardenia, B. STARS The business units or products that have the best market share and generate the most cash are considered stars. Monopolies and first-to-market products are frequently termed stars. However, because of their high growth rate, stars consume large amounts of cash. This generally results in the same amount of money coming in that
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