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Strategy (Boston matrix model (Based on the product life cycle theory and…
Strategy
Strategic management
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4) Shell model
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For example business leader when a company has strong positions in the sphere and strategy of development should be protect its positions and development of business
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Boston matrix model
Based on the product life cycle theory and used to determine what priorities should be given in the product portfolio of a business unit
Dogs - low market share and low growth rate and don't generate and consume a large amount of cash. Dogs - are cash traps because money tied up in a business that has little potential
Question marks - growing rapidly and consume a lot of cash but because they have low market shares they don't generate much cash
Stars - generate a lot of money because of their strong relative market share but also consume a lot of money because of high growth rates
Cash cows - leaders in a mature market, exhibit a return on assets that is greater than the market growth rate and generate more cash than they consume
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