The organization holds both electronics and appliances divisions and delivers innovative products as well as services to its valued customers worldwide (LG Electronics, 2012). It possesses in its assortment numerous electronic products as well as appliances that include televisions, air conditioners, refrigerators, mobile phones, and washing machines among others.
Source: (Scribd Inc., 2012).LG Electronics is considered to be a reputed multinational organization in the consumer electronics sector which was initiated in 1958. A pictographic illustration of the BCG Matrix is depicted hereunder. This particular quadrant assists the business organizations to generate maximum profits but is not anticipated for substantial growth of the business.Ĭash Cows are often regarded as the future of business organizations because they possess the tendency to generate huge profits as well as cash but with low growth (Griffin, 2012). Cash cows implies low growth but a high share in the business market. With a BCG Matrix, your team will have the information they need to make informed, strategic decisions.The lower-left position of the quadrant of the BCG Matrix i.e. Teams need solutions that illuminate a clear path forward. They should be analyzed carefully to determine whether they’re worth the investment required to grow market share. Question Marks are products with high growth prospects but a low market share.These products are prime candidates for discontinuation.
Dogs are products with both a small market share and a low growth rate.Companies should invest in Cash Cows to maintain their current level of productivity. Cash Cows are leaders in the marketplace, generate more cash than they consume and are part of a slow-growing category.Stars are products with the best market share, generate the most cash and are in a fast-growing category.These zones are “Stars,” “Cash Cows,” “Dogs” and “Question marks.” Each product will fall into one of four zones, which will determine its potential and suggest a specific action to take.
In deciding which quadrant a product fits into, consider the rate of market growth and market share. Write down the name of each of your products on a separate Post-it® Super Sticky Note. Divide the square into four equal quadrants.The vertical axis shows the rate of market growth, while the horizontal axis indicates the relative market share, as shown in the diagram.
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