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Discuss the term ‘star’ in the context of BCG mat…

Discuss the term ‘star’ in the context of BCG matrix.

Discuss the term ‘star’ in the context of BCG matrix.

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Chiranjibi Mar. 16, 2018

Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; hence the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.