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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.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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