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BUSIINESS AND FINANCIAL MANAGEMENT
16. Market growth rate and relative market share
The BCG matrix is used to analyze the products or businesses according to their market share and market growth rate.
Dogs are characterized by products having low market share relative to its competitors and low market growth. It is not recommended to further invest in these products or businesses because they generate negative cash returns. Retrenchment, divestiture and liquidation are possible strategies.
18. Cash cows
Products in this category have high market share and low market growth. They are the most profitable and should be utilized for generating maximum cash. It is not recommended to further invest in these products, instead they should only be supported to maintain the market share.
Products in the star category operate in a market growth rate environment and market share. Additional investment is required so that these products may become cash cows in the future. Market and product development, market penetration strategies can be adopted