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Thus in cases of Dog products, divestment strategy is used. Here is a video by Marketing91 on BCG Matrix. Success and Disaster Sequence Model Market growth rate vs Relative market share boston consulting group matrix model Success Sequence The Success sequence of BCG matrix happens when a question mark becomes a Star and finally it becomes a cash cow. This is the best sequence which really gives a boost to the companies profits and growth. The success sequence, unlike the disaster sequence, is entirely dependent on the right decision making. Disaster sequence Disaster sequence happens when a product which is a cash cow, due to competitive pressure might be moved to a star.
It fails out from the competition and it is moved to a question mark and finally, it may have to be Phone Number Data divested because of its low market share and low growth rate. Thus the disaster sequence might happen because of wrong decision making. This sequence affects the company as a lot of investments are lost to the divested product. Along with this the money coming in from the cash cow which is used for other products too is lost. Also Read What is Marketing Strategy? Complete Guide with Definition & How to Create One in 2023 4 Strategies of BCG Matrix There are four strategies possible for any product / SBU and these are the strategies which are used after the BCG analysis.
These strategies are 1) Build By increasing investment, the product is given an impetus such that the product increases its market share. Example – Pushing a Question mark into a Star and finally a cash cow (Success sequence) 2) Hold The company cannot invest or it has other investment commitments due to which it holds the product in the same quadrant. Example – Holding a star there itself as a higher investment to move a star into a cash cow is currently not possible. 3) Harvest Best observed in the Cash cow scenario, wherein the company reduces the amount of investment and tries to take out maximum cash flow from the said product which increases the overall profitability. 4) Divest Best observed in case of Dog quadrant products which are generally divested to release the amount of money already stuck in the business. Thus the BCG matrix or Boston matrix is the best way for a business portfolio analysis. The strategies recommended after BCG analysis help the firm decide on the right line of action and help them implement the same. Liked this post? Check out the complete series on Strategy Related Posts: The GE McKinsey Matrix – Nine Box Matrix What is The Kraljic Matrix – Portfolio Purchasing Model? What is SWOT analysis.
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