The BCG Matrix is used to classify different businesses based on market share and growth rates. It is divided into four main sectors.
"Cash Cows"
Represent areas that bring stable profits and are market leaders, but have already reached their growth ceiling. They do not require large investments, but their profits can be used to develop other projects.
Characteristics of the BCG matrix "cash cows":
has reached maturity in its industry;
continues to be a doctor data package market leader;
exists in a stable or declining market;
has a high level of sales;
is characterized by a high level of profit.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153324
"Stars"
In the BCG matrix, "stars" are business areas that require large investments, but promise high profits in the future. They are currently growing actively and already generate significant income, and have potential for further development.
Characteristics of the "stars":
being in the development stage;
on the way to the position of market leaders;
growing market;
high level of sales and the possibility of further growth;
high level of profit and the need for high costs.
The company should direct all its best resources to developing these areas, because active investments in “stars” can turn them into “cash cows”.
Groups in the BCG matrix
"Problem Children"
These are areas that require large investments, but bring little or no profit. They are fast-growing industries, but they are not yet keeping up with the market. In order for them to start bringing in income, they need to be actively invested in and their position in the market strengthened.
Characteristics of the BCG matrix "problem children":
currently in the implementation stage;
growing market;
low sales level with potential for growth;
low profit margins and high cost requirements.
The company must decide whether it has enough free resources to develop these areas. If the company has resources, then "problem children" can become "stars". If there are no free resources, then the company must abandon such areas.
Read also!
"Examples of Marketing Strategies: From Apple to Barack Obama"
Read more
"Dogs"
These are businesses that don't require a lot of investment but bring in little profit. They have either failed or are in a declining market.
Characteristics of the BCG "dog" matrix:
include being in a decline stage;
stagnant market;
low sales;
lack of opportunity for growth;
low profit margins and low expenses.
The company must decide to liquidate or reposition such projects. This is due to the fact that "dogs" are not promising for the company and do not bring the required profit. Instead, the company can focus its resources on more profitable areas.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for f