BCG Bold Concept
BCG Mold (from Boston Consulting Group) is another model, used mainly for the planning of businesses portfolios. Betakes on two isolated variables to perform the analyses: the markets’ growth rate and the markets’ relative share of the company.
Depending on the obtained values for each of these variables, the business is qualified in four different types (Question, Star, Cow and Dog) being, for each of them are made the generic recommendations about the strategies to adopt:
1st – Question: Business’ with high growth but in which the company has a low market share. Generally generates very negative financial flows, once its delay in the experience curb limits its profitability and the high growth of the industry forces substantial investments. The advice is to abandon the activity or raise the market share.
2nd – Star: Business’ with high growth but in which the company has a low market share. Generally generates minor financial flows, as the progress in the experience curb provides high returns, on the other hand the high growth of the industry forces substantial investments. The advice is to maintain leadership.
3rd – Cow: Business’ with low growth but in which the company has a low market share. Generally generates significant financial flows, since the progress in the experience curb provides high returns and the low growth of the industry does not force substantial investments. The advice is to capitalize the business in a way to sustain the growth of the products star and question.
4th – Dog: Business’ with low growth and in which the company has a low market share. Generally generates minor financial flows, since the delay in the experience curb does not allow high returns, but the low growth of the industry doesn’t also force substantial investments. The advice is to abandon or reformulate the business.
