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Whole foods bcg matrix8/11/2023 Therefore, business units that operate in rapid growth industries are cash users and are worth investing in only when they are expected to grow or maintain market share in the future. Market growth rate. High market growth rate means higher earnings and sometimes profits, but it also consumes lots of cash, which is used as an investment to stimulate further growth. Nonetheless, it is worth to note that some firms may experience the same benefits with lower production outputs and lower market share. ![]() This is because a firm that produces more benefits from higher economies of scale and experience curve, which results in higher profits. Higher the corporateās market share, higher the cash returns. Relative market share. One of the dimensions used to evaluate business portfolio is relative market share. It classifies business portfolio into four categories based on industry attractiveness (Market Growth Rate) and competitive position (Relative Market Share). It is a handy business tool which evaluates the strategic position of the business brand/product portfolio and its potential. The BCG Matrix or the Growth-Share Matrix is a very popular portfolio planning model which was developed by Bruce Henderson, founder of the Boston Consulting Group (BCG).
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