![]() ![]() This is why the matrix highlights the level of cash consumption required versus the resulting cash generation. Equally, it assumes that to establish a product in a growing market will require continual investment to produce the goods/services and to increase capacity. The underlying foundation of Bruce Henderson's model is that an increase in market share will result in an improvement in cash generation. The x-axis generally denotes the market growth rate, or cash usage - with the y-axis denoting relative market share, or cash generation.īruce Henderson reasoned that established and mature areas of a business where required to generate significant income (cash cows) which could then be invested into new highly profitable market leading products (stars). It operates more than 3600 flights in a week and is the largest airline in the Middle East (Emirates, 2017). This is a subsidiary of The Emirates Group, and is owned by the government of Dubai. The matrix is scored from low to high on both the x-axis and y-axis. by adamkasi BCG Matrix Analysis Emirates airline is based in Dubai, UAE. The quadrants are split into combinations of "market growth" and "market share", hence also being known as the growth-share matrix or growth-market-share matrix. The concept is based on four quadrants in which a company's strategic business units (SBU) or products/brands are classified. Devised as a portfolio planning tool, or corporate planning tool, the BCG growth-share matrix was first conceived by Bruce Henderson of the Boston Consulting Group back in the 1970's.
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