Critics of the growth-share method of analysing product portfolios point to its simplistic assumption that market share is always the key measure of a productвЂ™s competitive position and that market growth is always the most important indicator of an industry's attractiveness. Divest: Cut off a drain on resources even if it means taking short-term losses, for example by terminating a dog. Harvest: Increase short-term cash flow even at the expense of longer-term profits, for example by taking profits from stars and wildcats rather than investing in them and milking cash cows dry if market conditions seem set to worsen. Hold: Maintain current market share to make sure maximum profit and cash is generated now or in the future, for example by sustaining and milking a cash cow. Once the portfolio profile has been established four basic strategies for each product are possible: Build: Increase market share to strengthen the future position at the expense of shorter-term profits and cash flow, for example turning wildcats into stars. The BCG growth-share matrix The growth-share matrix emphasizes the need for a balanced portfolio of products if an organization is to grow and be self-sufficient in resources. It represents a drain on an organisation's resources, often at the expense of other products, and is a candidate for deletion unless it can be transformed through growth into a wildcat.ДЇigure 1. A dog has the worst of both worlds, having a low share of a market with no or low growth. They may be managed into stars but they can also degenerate into dogs if market growth disappears. Wildcats are therefore net users of cash resources. As this makes the product unprofitable at present and could put it in an even weaker position when the market matures, it requires some changes and probably investment to improve its market position. A wildcat (sometimes referred to as a 'problem child' or 'question mark') is in a growth stage but has achieved a relatively small market share. Cash cows вЂevolveвЂ™ from the stars of the growth stage and are a critical source of cash and other resources to develop new products. Because of its dominant market position, it is able to exploit maturity and generate plenty of surplus cash from its sales. A cash cow has a high share of a market which has matured. It is well placed to survive and prosper when growth slackens. Although it generates high revenues and is profitable, it uses lots of cash to fuel its growth and maintain its competitive position.

The BCG growth-share matrix A star product is growing fast and has achieved a high market share. They can be classified as a star, cash cow, wildcat (sometimes referred to as problem child or question mark) or dog. Products are labelled according to their likely impact on an organizationвЂ™s resources. The Boston Matrix and Ansoff's Matrix The influences of growth and market share have been brought together into a matrix by the Boston Consulting Group (BCG). Home В» The Boston Matrix and Ansoff's Matrix Biz/ed - The Boston Matrix and Ansoff's Matrix | Biz/ed

Criticism of ansoff matrix pdf