How do I Place my Products / Services in the BCG?
Currently I'm
trying to place the services of my company in the BCG matrix, and I have problems in theses aspects:
1. Should the products be placed by their relation of cost-benefit?
2. My core business moves around the handycapped people, and it's very hard to know what is the growth of the "market", so I don't know the effectiveness of placing my services if the data is wrong.
3. About the stars. In the explanation is said that star products have an aggressive cash flow requirement. My core service hardly reaches a profit, depending on the season, but it's the service with generates more income... is this a star?
Please help me... Thanks.
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santiago HR Consultant, Angola
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How to Do BCG Plotting I would comment that the model is used to evaluate the state of your portfolio of products of markets.
Thus you have black and white TV, colour TV and HDTV, new SMDTV (super mobile HDTV) for example.
The black and white is a dog, no real sales, colour is the cash cow, HDTV the star, and SMDTV is a question mark. The size of the circle can be used to show the size of the market or the net contribution to the business, if you want market share suggest using a different model.
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