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

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

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

0
Chiranjibi Chapagain 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.

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

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