1. Presented by
Amrutha M. S.

2. Introduction
 Portfolio planning model developed by Bruce
Handerson in the early 1970’s
 Helps to evaluate the industry growth and the
relative position of a firm in the industry.
 An increase in market share results in generation of
cash.
 Growing market requires investment in assets to
increase capacity.
 Matrix classifies the business of a firm in to four
distinct categories.
 The two parameters are market growth and market
share.

3. The four categories are
 Stars
 Cash cows
 Question marks
 Dogs

4. Stars
(=High growth , high market share)
 Net users of resources
 Generate large amounts of cash
 Consumes large amounts of cash
 Can become the market leader if it maintains its
large market share
 Become a cash cow when the market growth rate
declines

5. Cash cows
(=low growth, high market share)
 Net generator of resources
 Brings higher profits
 Does not need heavy investment
 Provides cash to turn question marks in to stars

6. Question marks
(=high growth ,low market share)
 Net users of resources
 Future is uncertain
 High market growth and consumes large amount of
cash
 Low market share
 Has the potential to gain market share and become
star
 Becomes cash cow if market growth decline

7. Dogs
(=low growth, low market share)
 Low market share
 Low growth rate
 They are the cash traps
 Neither generate nor consumes large amount of cash

8. BCG MATRIX