In the notes it is mentioned that Cash cow do not turn into dogs. In the books of BPP, it is mentioned that Dogs may be ex cash cows. Can somebody please shed some light on same. Thanks.
Anything can turn into anything. However, whereas there is a natural progression from problem child to star and to cash cow, this is not usually expected with dogs which should be divested immediately.
That’s not to say that a cash cow could not become a dog but it implies that for some reason the company has gone from a high market share to a low one.
In past exam questions, The model answer opts for high market share on different percentages, In one question it pointed out 12.2% as high market growth and this percentage was achieved across 5 years.
What percentage parameters could be there to categorize as a product or division as high market share or high market growth?
It depends on competitors and other markets ie whether you are high with respect to the market share of your competitors or the particular market growth rate is high compared to other markets.
Judging whether something is high or low is a potential weakness of BCG.
So for instance if a company operates in two divisions, One for Cafe and the other one for Restaurant. And Restaurant Market have got 2% growth rate across 3 years span while Cafe Market has grown over by 6.5% in the same period.
This means in this portfolio the Cafe Market will be considered as high growth rate?
Excellent lecturer! I just wanted to see introduction and pick some exam tricks and start study on mine own. I changed my mind, when realized how lectures are good 馃檪 Thank you!
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meena4u says
In the notes it is mentioned that Cash cow do not turn into dogs. In the books of BPP, it is mentioned that Dogs may be ex cash cows. Can somebody please shed some light on same. Thanks.
Ken Garrett says
Anything can turn into anything. However, whereas there is a natural progression from problem child to star and to cash cow, this is not usually expected with dogs which should be divested immediately.
That’s not to say that a cash cow could not become a dog but it implies that for some reason the company has gone from a high market share to a low one.
sa1pw says
In past exam questions, The model answer opts for high market share on different percentages, In one question it pointed out 12.2% as high market growth and this percentage was achieved across 5 years.
What percentage parameters could be there to categorize as a product or division as high market share or high market growth?
Ken Garrett says
It depends on competitors and other markets ie whether you are high with respect to the market share of your competitors or the particular market growth rate is high compared to other markets.
Judging whether something is high or low is a potential weakness of BCG.
sa1pw says
So for instance if a company operates in two divisions, One for Cafe and the other one for Restaurant. And Restaurant Market have got 2% growth rate across 3 years span while Cafe Market has grown over by 6.5% in the same period.
This means in this portfolio the Cafe Market will be considered as high growth rate?
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