Reference no: EM133051936

Do a response to the below discussion 

BCG Matrix is a tool to evaluate the strategic position of products or business units and categorize them into four buckets based on competitive position and industry attractiveness. Competitive position is measured by relative market share, and industry attractiveness is measured by the growth rate of the industry. (Guest, 2019, p. 96.) Corporations may use this tool to view their business units in a more holistic view and make decisions regarding investment.

• Dogs operate in small growth rate industries and have a small share of the market. It's difficult to argue for investing in something with small growth and return, so often these businesses get liquidated. Before divesting out, the corporation should do a thorough analysis and consider keeping dogs if they are capable of generating low profit for a longer-term.
• Cash cows have a large market share and small market growth which means large returns for a small investment. Corporations should "milk" their cash cow for all it's worth and invest the money into other products/units.
• Stars have a high market share in high-growth industries. They consume large investments as well as generate large profits. Companies should have some stars in their business portfolio to ensure future long-term cash flows.
• Question marks don't have a significant market share so they generate a little profit, however, they are in the high growth market. If managed well, and with the right amount of investment these could become cash cows or even stars. Usually, startups start as a question mark so they consume large amounts of cash.

In the simulation, a company should identify their products by the above categories and strategize in a way to balance out their portfolio by moving them through successive stages. In terms of sales, question mark product will be considered a new product introduction that will consume more cash than it generates. Once the question mark product moves into the growth phase, sales will increase at a faster rate. With the right strategy and thorough analysis of competitors and the environment, stars will then move into the cash cow stage where sales are at their highest point but with a slower rate of growth. Eventually, cash cows may enter into the decline phase and become dogs and sales begin to fall. Of course, if the company does not have the right strategy in place or does not consider a thorough analysis of the competitive environment, question marks or stars may become dogs sooner rather than later.