Question

Topic: Student Questions

Bcg

Posted by jonela.aliu1 on 10/8/2012 at 1:09 PM ET 35 Points
In BCG of the marketing it means that are included (?)question marks, stars, cash cows and dogs. But where is the best time to invest money. is it related with the diagram of the PLC? (introduction, growth, maturity and decline) I know that the best time to invest money and also new idea is in the maturity, so if it is related it means that for BCG is cash cow?
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  • Posted on 10/8/2012 at 7:16 PM Accepted
    I'm not sure I understand your question.

    If you knew which items in the portfolio were going to make it from introduction to growth, you'd invest heavily in them. The problem is that most "problem children" end up as "dogs," and you don't know which ones they are until it's too late. That means there's risk involved.

    To minimize the risk, you might want to wait until a product is clearly in "growth" mode, on the way to becoming a "star." Of course, you don't always know how long to wait, so you might end up missing the initial upswing.

    You can't always "buy at the bottom and sell at the top." You have to use a lot of judgment ... and judgment often gets better with experience.
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