bcg growth share matrix used in healthcare

Based from the growth-share matrix, corporations should not only invest in cash cows for the sake of inducing growth, but to help support them in maintaining their current market share. It is highly recommended that the cash gained from these cows be invested into stars, which will promote further growth. The most profitable brands are referred to as cash cows, and they should be “milked” in order to provide as much cash possible. This makes a deeper analysis of each brand vital, as companies need to make sure that the dogs can perform well before choosing to divest, as removing them can potentially hurt the company. Sometimes they simply act as defense fortifications against competition and their strategic decisions. Some dogs prove to be profitable for longer periods of time, and some companies find that they provide synergies for other brands or strategic business units. Generation of cash is either low or negative in returns, but that isn’t always the case. They operate in a slowly growing market, which in general, makes them not worth investing in. The four quadrants in which the firm brands are classified:Ĭompared to its competitors, dogs hold low market share. The main purpose of the analysis is to help companies understand the processes deeper, which brands they should be investing in, and those that need to be divested. These two factors uncover the likeliness of the business portfolio’s profitability, which is identified in terms of cash that supports the unit and the generated cash.

The BCG matrix classifies business portfolios into four categories, under the basis of industry attractiveness, which is the growth rate of that industry, and competitive position, the relative market share. the growth-share matrix, Boston matrix, Boston Consulting Group analysis) is a framework chiefly used to evaluate and examine the strategic position of a Created by the Boston Consulting Group in 1970, the BCG matrix (a.k.a.

Bcg growth share matrix used in healthcare