Professional Documents
Culture Documents
Strategic position
Strategic choice
Implementation (or strategy into action)
8 What are the four quadrants of a BCG matrix and what market share and
growth rates do they have?
Problem child (or question mark): high market growth rate, low market share.
Star: high market growth rate, high market share.
Cash cow: low market growth rate, high market share.
Dog: low market growth rate, low market share.
11 What are the characteristics of the market that you would expect to see at
the mature stage of a product life cycle?
Fierce competition because the market is not growing. This leads to price pressure and the need to
improve specifications to sell to an experienced set of customers. Weaker competitors often drop
out and many combine (consolidation) to achieve the economies of scale needed. High profits
should be possible for efficient producers (great scale, efficiency and well down the learning curve).