First step understand where we are now

The first step

The first step is to figure out where we’re located right now.

A useful reference system is certainly the BCG Matrix, created in the seventy by the Boston Consulting Group. This allows to classify the strategic business areas (ASA/SBU) or business activity in relation to growth rate and market share.

To briefly remember the carryover below:

BCG Matrix Market share
Low High
Growth High Question marks: Just a nice dilemma, these questions points! We are on risky products, and we do not know what to do, also because the market runs, but we do not quite… Stars: We are at maximum! But to stay at the maximum you need to run and invest… What do we want to do? Continue, sell or turn into a cash cow?
Low Dogs: the “hounds”. Low-altitude, low-growth, low profits, and that horrible word: “buoyancy.” You live the day. You have to make some decisions if you don’t just want to survive. Cash cows: the “milking cow”. Keep it up, until it turns well… It is an activity that, without struggling too much, gives you great satisfactions. Though… But the world goes on.

As you can easily infer you need to try to understand in which quadrant is our company or our product. Within a quadrant we may be more or less close to an extreme, in a border area, and even this understanding will help us understand something more.

In any way once you understand our location there will be a next step. Decide in which direction to move. And, at this point, it becomes indispensable to equip oneself with a strategy. Click here to see if you agree with this approach.