Topic > BCG Matrix Case Study - 1003

The Boston Consulting Group (BCG) matrix is ​​used by organizations to analyze whether their performance is high or low and indicate their market growth or position in the market, which is similar to the product life cycle of introduction, growth, maturity and decline phases. Stars: Represent high market growth and high market share and are leaders in the business world. The organization would require a significant amount of money to maintain its high market share; they are also users and generators of cash. They are the core units of an organization and this shows where the company should invest its money, as stars are expected to become cash cows and generate positive cash flow. Question marks: represent low market share and high market growth, at this stage the organization will invest a huge. Once the product is accepted, the organization will experience a high growth rate. For example, PAX Yogurt Company, originally from Monte San Benedetto, is a local company that has developed seven different flavors of yogurt on the market, namely: almond, guava, passion fruit, pineapple, soursop, strawberry, natural (plain) and vanilla. The primary objective was to satisfy customer needs with a good quality product at an affordable price in order to return high sales and profitability to the company. It is imperative at this stage that particular attention is placed on creating pricing, positioning or distribution and promotion strategies so as to establish a market presence and create adequate demand for the product. Pricing strategies include price skimming and price penetration. At this stage it is advisable to use, for example, the price skimming strategy, setting the price of the product at the highest possible level. Prices can then be lowered when demand starts to increase