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The BCG growth-share matrix helps in strategic decision making by categorizing a company's business units or products into four quadrants: Stars, Cash Cows, Question Marks, and Dogs. For investment strategies, it suggests investing in Stars and Question Marks as they have high market growth. For divestment strategies, it suggests considering Dogs, which have low market share and growth. For product development, it suggests focusing on Stars and Cash Cows, which have high market share. However, it's important to note that these are general guidelines and specific decisions should be based on a comprehensive analysis of the business situation.
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The BCG growth-share matrix categorizes a company's business units or products into four quadrants based on market growth rate and relative market share: Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks (high growth, low share), and Dogs (low growth, low share). This matrix helps executives allocate resources effectively, balance their product portfolio, and make informed decisions about investment, divestment, or product development strategies.
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