How do you deal with question marks and dogs in your BCG matrix?

In my view, the BCG matrix is under used framework to analyze a company's product portfolio based on market growth rate and relative market share. It helps with resource allocation, strategic planning, performance evaluation, and organisational communication. For example, it categorizes products as Stars (high growth, need investment), Cash Cows (generate cash flow), Question Marks (uncertain prospects), and Dogs (declining). Overall, the BCG matrix enables companies to optimize their portfolio for sustainable growth and profitability.

I really enjoy using the ansoff matrix. Its a strategic tool businesses use to identify growth strategies through product and market analysis. It helps with market expansion (penetration, development), diversification, and product development. For example, businesses can use market penetration to increase market share, product development to introduce new products, market development to enter new markets, and diversification to expand into new products and markets. Overall, the Ansoff matrix aids businesses in aligning growth strategies with objectives and effectively managing expansion efforts.

Question marks are products with low market share in a high-growth market. Here are some strategies for dealing with question marks: Invest in product development: By investing in research and development, businesses can improve the product and make it more competitive. Market development: Expanding the market by targeting new segments or geographies can help increase sales and market share. Strategic partnerships: Collaborating with other companies or acquiring complementary businesses can help businesses accelerate growth and gain market share. Divestment: If a question mark is not showing any signs of growth or is not aligned with the overall strategic goals of the business, it may be best to divest and invest resources elsewhere.

Dogs are products with a low market share in a low-growth market. They generate little revenue and may require significant investment to keep them afloat. Taking a strategic approach by an organization means looking beyond such immediate lenses and taking on a broader, more holistic view of the company’s growth. It is important to understand if dogs sustain other business units, if they aligns with company’s core purpose, and if the underperforming dogs are aligned with core strategy of business, then it is important to invest in them for overall company’s growth. Dogs should be retained if product has significant market presence in that category or company believes that dogs could be converted into cash cows in a better economy.

Dogs are products with a low market share in a low-growth market. They generate little revenue and may require significant investment to keep them afloat. Here are some strategies for dealing with dogs: Harvesting: Businesses can continue to sell the product to existing customers but reduce investment in marketing and product development. Cost-cutting: By reducing costs associated with production, marketing, and distribution, businesses can improve profitability and extend the product's lifespan. Divestment: If a dog is not generating enough revenue or is not aligned with the overall strategic goals of the business, it may be best to divest and invest resources elsewhere.

It's important to note that the strategies for dealing with question marks and dogs should be evaluated in the context of the overall product portfolio and the business's strategic goals. Each product should be analyzed case-by-case to determine the best course of action.