10. Bkg matrix (Boston consulting group)

Model or matrix БКГ occurrence was logic end of one research work spent in due time by experts of the Boston consultative group (Boston Consulting Group) in the field of strategic planning. At the heart of matrix БКГ the model of life cycle of the goods according to which the goods in the development take place four stages lays: an exit on the market (the goods - "problem"), growth (the goods - "star"), a maturity (the goods - "milk cow") and recession (the goods - "dog").

For an estimation of competitiveness of separate kinds of business in matrix БКГ two criteria are used: rate of growth of the branch market; a relative share of the market. Rate of growth of the market is defined as the average value of rates of growth of various segments of the market in which the enterprise operates, or is accepted equal to rate of growth of a total national product. Rates of growth of branch of 10 % also are more considered as high. The relative share of the market is defined by division of a share of the market of considered business into a share of the market of the largest competitor.

Value of a share of the market, equal 1, separates products - market leaders - from followers.

At the heart of matrix БКГ two assumptions lay:

-The business having an essential share of the market, gets as a result of action of effect of experience competitive strategic advantage concerning production costs. From here follows, that the largest competitor has the greatest profitability at sale for market prices and for it financial streams are maximum.

-Presence in the growing market means the raised requirement for financial assets for the development, i.e. updating and expansion of manufacture, carrying out of intensive advertising etc. If rate of growth of the market is insignificant, for example the mature market the goods do not require considerable financing.

In that case when both hypotheses are carried out, it is possible to allocate four groups of the markets of the goods, corresponding to various priority strategic targets and financial requirements:

• "Problems" (fast growth / a small share): the goods of this group can appear very perspective as the market extends, but demand considerable means for growth maintenance. With reference to this group of products it is necessary to solve: to increase a share of the market of the given goods or to stop their financing.

• "Stars" (fast growth / a high share) are market leaders. They make considerable profit thanks to the competitiveness, but also require financing for maintenance of a high share of the dynamical market.

• "Milk cows" (slow growth / a high share): the goods, capable to bring has more profit, than it is necessary for maintenance of their growth. They are the basic source of financial assets for диверсификации and scientific researches. A priority strategic target - "harvesting".

• "Dogs" (slow growth / a small share) are products which are at a great disadvantage on costs and have no growth possibilities. Preservation of such goods is connected with considerable financial expenses at small chances of position improvement. Priority strategy - the termination of investments and modest existence.