Pets are unnecessary they are evidence of failure to either obtain a leadership position or to get out and cut the losses. All products will eventually become either cash cows or pets. Companies should liquidate, divest, or reposition these “pets.”Īs can be seen, product value depends entirely on whether or not a company is able to obtain a leading share of its market before growth slows. Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Companies should significantly invest in these “stars” as they have high future potential. Companies should milk these “cash cows” for cash to reinvest. The BCG matrix, also known as a growth/share matrix, is a business tool that you can use to help you create strategic, long-term plans regarding investment in competitiveness and market attractiveness. The matrix reveals two factors that companies should consider when deciding where to invest-company competitiveness, and market attractiveness-with relative market share and growth rate as the underlying drivers of these factors.Įach of the four quadrants represents a specific combination of relative market share, and growth: These high growth rates then signal which markets have the most growth potential. Ultimately, the market leader obtains a self-reinforcing cost advantage that competitors find difficult to replicate. The growth share matrix was built on the logic that market leadership results in sustainable superior returns. Technology, Media, and Telecommunications.Their success-and much of the fun-lies in developing new ways to do things. They embrace risk and act to protect and restore the stability, integrity and beauty of the web of life. The challenges faced as a society require leadership. They seek not only to do less harm, but more good. But they recognize that this is not enough. They work steadily to change their business practices and share what they’ve learned. They know that their business activity-from lighting stores to dyeing shirts-is part of the problem.

Making the best product matters for saving the planet.

Among the most direct ways they can limit ecological impacts is with goods that last for generations or can be recycled so the materials in them remain in use. Their criteria for the best product rests on function, repairability, and, foremost, durability. The SWOT Analysis of Patagonias Sustainability Strategy: Dont Buy Our Products HBR case study includes analysis of internal and external factors., Transparency MBA, EMBA, Strengths, Weakness, Opportunities, Threats,SWOT Matrix, ppt, template. The approach they take toward product design demonstrates a bias for simplicity and utility. Patagonia, Inc.'s values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted.

Patagonia bcg matrix