Therefore, a company can increase market share if it seems profitable. The matrix indicates that the profit of the company is directly related to its market share.Helpful for managers to evaluate balance in the firm’s current portfolio of Stars, Cash Cows, Question Marks, and Dogs.Hence, the company can decide its proper management strategy. It predicts the future actions of a company. Larger companies can use it for the seeking volume and experience effects. It is simple to implement and easy to understand.Moving SEO from a question mark to a star is a common goal of businesses that have poor natural search performance but understand the steps to make improvements. You can also use it to assess your digital channels themselves and understand, therefore, whether you are applying your focus effectively.įor example, Is paid search a cash cow or a dog? The value of this channel is often debated and so being able to substantiate where your channels fit on the BCG matrix is a great way to communicate how your channel strategy will be managed.
The BCG matrix will inform which products you should be selling through which methods and channels, which will influence your overall digital strategy. It needs to consider where income will come from in future. If a company is not developing many Question Marks, The tool can reveal portfolio weaknesses that may threaten aĬompany’s future cashflow.
Which assets could produce future revenues and make investment decisions thatĮnsure funds are allocated to the right assets. Management to manage cashflow (McDonald, 1999). The BCG matrix should be used as part of strategic portfolio For example, get rid of the dogs, and use the capital you receive to invest in stars and question marks.
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