What is a problem child in the Boston Matrix?

Problem child is a quadrant in the BCG Matrix and is the triage category among the cash cows, stars, and dogs. A problem child is a business line that has good growth potential but a small share of the growing market.

Why is it called dog in BCG Matrix?

Definition: ‘Dog’ is named as one of the quadrants of the Boston Consultancy Group (BCG) matrix which has a small market share in a mature industry. Description: A ‘dog’ is a name given to a business unit within a company which has a much smaller share in a mature market.

Which of the following is also known as problem child or wild cats Star cash cow question mark dog?

Question marks, which are also known as problem children or wild cats, are business units that have a small market share in a high growth market. They do not try to generate much cash in their industry (figure 1).

Which one of them is known as the problem child and has the potential to gain market share?

question mark
A question mark (also known as a “problem child”) has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows.

Why is the Boston matrix useful?

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It’s also known as the Growth/Share Matrix.

Who is a problematic child?

A problem child is a child who is considered difficult you were probably one, right? The term is also used as a metaphor for a persistently trying or demanding person, thing, or responsibility.

What does cow symbolize in BCG matrix?

Cash Cows
Explanation : Cash Cows symbolize Stable in BCG matrix. Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that have a high market share but low growth prospects.

What does symbolize in BCG matrix?

The vertical axis of the BCG Matrix represents the growth rate of a product and its potential to grow in a particular market. Stars: Products with high market growth and a high market share. Dogs: Products with low market growth and a low market share. Cash cows: Products with low market growth but a high market share.

What is a problematic child?

Filters. (euphemistic) A child who is particularly difficult to raise or educate, especially due to a lack of self-control and disruptive and antisocial behavior. noun.

What is a cash cow in the Boston Matrix?

Description: A Cash Cow is a metaphor used for a business or a product, which exhibits a strong potential in terms of returns in a low-growth market. A cash cow is a term used in the Boston Consulting Group (BCG) matrix. A business becomes a cash cow or a dog depending on its performance in the growth stage.

Which is better cash cow or star?

In contrast to a cash cow, a star, in the BCG matrix, is a company or business unit that realizes a high market share in high-growth markets. Stars require large capital outlays but can generate significant cash. If a successful strategy is adopted, stars can morph into cash cows.

Why is the Boston matrix not useful?

Limitations of BCG Matrix High market share does not always leads to high profits. There are high costs also involved with high market share. Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability.

Are there any problems with the Boston matrix?

The main problem is that it oversimplifies a complex set of decision. Be careful. Use the Matrix as a planning tool and always rely on your gut feeling. Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.

What is the problem child in the BCG matrix?

The growth-share matrix is also called the BCG Matrix or Boston Matrix and the problem child designation may also be referred to as a “question mark”. 1 Problem child is a quadrant in the BCG Matrix and is the triage category among the cash cows, stars, and dogs.

What is the Boston Consulting Group product portfolio matrix?

Stars: Products in high growth markets with high market share. The Boston Consulting Group ’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

How to make money in the Boston matrix?

These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income. Keep and build your stars. Look for some kind of balance within your portfolio. Try not to have any Dogs. Cash Cows, Problem Children and Stars need to be kept in a kind of equilibrium.