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Marketing Grid

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Submitted By karllouie12
Words 1124
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KARL LOUIE ANJELO M. YU JULY 17, 2014
PRN MKT-BMM0918 PROF. NITTO P. VICTORIA
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Parts of the growth-share matrix
The growth-share matrix helps organizations assess its companies and business units on two levels. The first is its level of growth within the market, while the second measures its market share relative to the competition within its industry.
To help businesses further analyze its assets, the matrix divides the business units or products into four categories, including:
Stars: The business units or products that have the best market shares and generate the most cash are considered stars. However, because of their high growth rate, stars also consume large amounts cash. This generally results in the same amount of money coming in that is going out. Stars can eventually become cash cows if they sustain their success until a time that the market growth rate declines.
Cash cows: Cash cows are the leader in the marketplace and generate more cash than they consume. These are business units or products that have a high market share, but a low growth prospects. According to NetMBA, cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders.
Dogs: Business units or products that are dogs are those have both a low market share and low growth rate. They don't earn a lot of cash, nor do they consume a lot. Most likely these aspects of a business are making little, if any money. Dogs are generally considered cash traps

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