Bcg Corporate Strategies

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BCG Corporate Strategies

Built Market Share
To accomplish this end, the managers must identify promising business units that currently placed in question marks category. Management then attempts to transform these businesses into stars. This process of increasing market share may involve significant prices reductions, even if it result in in losses or marginal profitability in the short-run.
Hold Market Share
Another strategy is to hold market share. In this situation, cash cows are managed so as to maintain their market shares, rather than to increase them. Holding large market share generates more cash than building market share does. Hence , the cash contributed by the cash cows can be used to support stars and selected question marks.
Harvest
Harvesting means milking as much short-term cash from a business as possible, usually while allowing its market share to decline. The cash gained from this strategy is also used to support stars and selected question marks. The business harvested are usually dogs, question marks that show little promise of growth and perhaps some weak cash cows.
Divest
Divesting a business unit usually provides some cash to the company (from the sale) and stems the cash outflow that would have been spent on the business in the future. As dogs and less promising question marks are divested, the cash obtained is relocated to stars and to questions marks qith potential to become stars.
The BCG heavily emphasizes the importance of market leadership. Cash cows and stars are market share leaders. Some questions marks are cultivated to become leaders as well, but less promising questions marks and dogs end in harvest or…...

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