MANAGEMENT

BUISENESS MANAGEMENT

MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one is about dogs in BCG analysis?
A
high/high
B
high/low
C
low/high
D
low/low
Explanation: 

Detailed explanation-1: -A dog is a business unit that has a small market share in a mature industry. A dog thus neither generates the strong cash flow nor requires the hefty investment that a cash cow or star unit would (two other categories in the BCG matrix ). A dog measures low on both market share and growth.

Detailed explanation-2: -As I noted in the video, the dogs are those product lines in a market that is not growing and in which you have only a small market share. Typically, this will mean that you should dump these product lines to free up resources for other, higher potential, products. However, there are exceptions to this rule.

Detailed explanation-3: -The BCG Matrix: Dogs Products in the dogs quadrant are in a market that is growing slowly and where the product(s) have a low market share. Products in the dogs quadrant are typically able to sustain themselves and provide cash flows, but the products will never reach the stars quadrant.

Detailed explanation-4: -Therefore, in such situation, managers need to decide whether the investment currently being spent on keeping these products alive, could be spent on making something that would be more profitable. Diet coke, a Coca-Cola product, is on such example of Dogs.

Detailed explanation-5: -The four quadrants are designated Stars (upper left), Question Marks (upper right), Cash Cows (lower left) and Dogs (lower right). Place each of your products in the appropriate box based on where they rank in market share and growth.

There is 1 question to complete.