Management has to think hard about which question marks it should try to build into stars and which should be phased out.ĭogs are low-growth, low-share businesses and products. They require a lot of cash to hold their share, let alone increase it. Low-share business units in high-growth markets. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.
These established and successful SBUs need less investment to hold their market share. Low-growth, high-share businesses or products. Eventually their growth will slow down, and they will turn into cash cows. They often need heavy investments to finance their rapid growth. High-growth, high-share businesses or products. SBUs are classified as stars, cash cows, question marks, or dogs. The process by which management evaluates the products and businesses that make up the company.Ī portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. The collection of businesses and products that make up the company. The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.Ī statement of the organization’s purpose-what it wants to accomplish in the larger environment.
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