If the management finds that these business units have potential to be dominant in the market an expansion strategy may be adopted else retrenchment strategy can be adopted. There is no specific strategy for these units. The ‘Question Marks’ are generally new goods or services which have a good growth potential in future. These business units require special attention of the management to make these businesses profitable.
As these business units operate in a high growth industry, hence they require a huge investment to maintain or gain the market share.
These business units have a low market share in a high growth industry. The ‘Dog Business Units’ should be kept as minimum as possible in an organization. Unless these units are having some strategic goal, it is always better to liquidate these business units if there are few chances of these to gain market share again. These business units have a low market share because of high costs, poor quality, ineffective marketing, etc. It can easily be understood that these business units do not generate case and they do not require huge investment to maintain as they operate in a low growth industry. Dogsĭogs are the business units having low market share in a low growing market. Cash cows are placed in the lower left quadrant of the matrix. These are the core business units which are the main source of revenue for the company and these units provide the stability to the company. Cash cows are profitable business units which require little investment to maintain them and the profit generated from these businesses can be utilized for investment in other business units of the company.
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