Case Study Based On Bcg Matrix
The key concept of the BCG-Matrix is to reach a balance of positive and negative cash flows between the different businesses.
As shown before, each field can be defined as a net cash generator or cash user.
SBU) divided by that of the largest other competitor.
That means, the higher the relative market share is the more cash the business will generate.
Basically, the matrix can be divided into six core elements, each with specific assumptions.
Based on only a limited amount of input data (relative market share and market growth), senior executives gained a clear picture of their business portfolio in an increasingly complex environment.
This is required to make decisions for each SBU independently without affecting others in the portfolio.
However, the definition of SBUs might be challenging, as products within a SBU might have different market growth and relative market shares.
These describe a business focused on a particular product-market combination.
It is essential that these are mostly independent from each other but have similar structures and resources.