MARKET GROWTH  If the sales revenue in a particular market rises from 100 million to 110 million, the market is said to have experienced 10% growth

MARKET SHARE  If sales revenues for a business are $100 million in an industry that is worth a total of 400 million, then the firm’s market share is 25%  Market share= (100/400)x100

Product portfolio analysis  Mitsubishi, the japanese multinational company, has a product portfolio that includes products as diverse as motor vehicles, consumer electronics and pens etc  Product portfolio analysis allows a business to decide which products should receive more or less investment.  Boston consulting group looks at 2 dimensions: market growth and market share

MATRIZ BOSTON CONSULTING GROUP

BOSTON CONSULTING GROUP MATRIX  Dogs: are products with a low market share operating in a low growth market.  Dogs do not generate much cash for the business as the market tends to decline.  Firms that have too many products in this quadrant find that there is a lack of cash for the business

BOSTON CONSULTING GROUP MATRIX  Problem child: (?) refers to the product that operate I a high market grow sector, but have a low market share  The product can represent inferior product quality or marketing to those of competitors

BOSTON CONSULTING GROUP MATRIX  Starts: are products that operate in high growth markets and have high market share  Starts are highly successful products that tend to generate high amounts of cash for a business  Businesses will tend to invest money in developing and promoting their starts

BOSTON CONSULTING GROUP MATRIX  Cash Cows: are products with high market share operating in a low growth market  Extension strategies