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Unformatted text preview: The BCG Growth-Share Matrix It is based on the observation that a company’s business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name “growth- share”. Market growth: industry attractiveness (cash usage) Relative market share: competitive advantage (cash generation) Stars (high market growth / high relative market share) - Stars are defined by having high market share in a growing market.- Stars are the leaders in the business but still need a lot of support for promotion a placement.- If market share is kept, Stars are likely to grow into cash cows. Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. Therefore, the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate out....
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- Spring '08
- Business, cash flow., Cash cow