They should be carefully analysed to determine whether they can become Stars, where investments pay off and market shares are gained, or if there is a greater likelihood that they will fall short of expectations and become Dogs. Usually, these are product innovations or new products positioned in growth markets with little or no market share. Question Marks are projects or products for which the likelihood for success cannot yet be estimated.To maximize profits and increase profitability, it is also possible to optimize these products or projects by improving production, reducing costs, or automating processes. The recommended strategy for business units in this category is to capitalize on the profits generated and invest those in Stars. They are self-sustaining with a high demand or market share and may even be market leaders.

In contrast, Cash Cows can serve as a source of financing for other products or projects since they generate high cash flow but have limited growth potential.This may involve further developing a product or project, expanding capacities, or exploring new distribution channels. Therefore, a possible strategy is to prioritize and invest in stars to fully exploit their growth potential. They have already been successfully introduced to the market and have gained new market shares. Stars have the highest growth potential and are likely to be profitable.Setting priorities and defining strategiesĪfter categorizing the business units, you can create a priority list and establish strategies for each quadrant or business unit.

Bcg portfolio matrix