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More and more smartphones and laptops are being adopted. Desktops are still products with good market share and possibly growth. However, we have no idea till when the growth will continu. Another innovation down the line can completely kill Desktop computers. Many times, a company might come up with an innovative product which immediately gains a good growth rate. However, the market share of such a product is unknown. The product might lose customer interest and might not be bought anymore in which case it will not gain market share, the growth rate will go down and it will ultimately become a Dog. On the other hand, the product might increase customer interest and more and more people might buy the product thus making the product a high market share product.
From here the product can move on to be a Cash Cow as it has lower competition and high Phone Number Data market share. Thus Also Read What is Diffusion of Innovation? Theory by Everett Rogers This uncertainty gives the quadrant the name “Question Mark”. The major problem associated with having Question marks is the amount of investment which it might need and whether the investment will give returns in the end or whether it will be completely wasted. Strategies for Question marks As they are new entry products with high growth rate, the growth rate needs to be capitalized in such a manner that question marks turn into high market share products. New Customer acquisition strategies are the best strategies for converting Question marks to Stars or Cash cows. Furthermore, time to time market research also helps in determining consumer psychology for the product as well as the possible future of the product and a hard decision might have to be taken if the product goes into negative profitability. 4) Dogs Products are classified as dogs when they have low market share and low growth rate.
Thus these products neither generate high amount of cash nor require higher investments. However, they are considered as negative profitability products mainly because the money already invested in the product can be used somewhere else. Thus over here businesses have to take a decision whether they should divest these products or they can revamp them and thereby make them saleable again which will subsequently increase the market share of the product. Strategies for Dogs Depending on the amount of cash which is already invested in this quadrant, the company can either divest the product altogether or it can revamp the product through rebranding/innovation/adding features etc. However, moving a dog towards a star or a cash cow is very difficult. It can be moved only to the question mark region where again the future of the product is unknown.
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發表於 16:32:04