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Market growth also would require the investments in the assets of the business in order to help increasing the capacity and thus can result in the consumption of the cash. This can help them to increase their position in the business because of the cash generation and cash consumption.
The market growth rate also means as the rapidly growing in rapidly growing markets which shows what organizations need to strive for. Thus, the penalty is they are usually net cash users as they always would require investment. The reasons for this matter happen is because the growth of the business is being bought by the high investment especially in the reasonable expectation that a high market share would usually turn into the thought of people as the investments in the profits of the …show more content…
Another limitation that can be found is the attractiveness of the market or industry is usually determined by the market growth only, but there will be many more factors that can be used in order to determine the market growth rate. The examples of the other factors are based on the resources, abilities and temperament that are particular to each business (Healy, …show more content…
Before reaching to the transformation of the modern eras, the BCG model only used to analyze about one or two separate divisions in their business (Healy, 1955). Thus, it also may be adapted to provide some approaching into the smaller businesses.
Generally, the BCG model can be used by the small to medium-sized businesses which require them to calculate the position of the individual products rather than SBUs and also using the growth of the individual market segments for each of the products that is important for the market share or industry growth rate aspect. According to Healy (1955), he said that in order to estimate the relative market share growth rate, the direct other brand competitors can be used for each of the
The market growth rate also means as the rapidly growing in rapidly growing markets which shows what organizations need to strive for. Thus, the penalty is they are usually net cash users as they always would require investment. The reasons for this matter happen is because the growth of the business is being bought by the high investment especially in the reasonable expectation that a high market share would usually turn into the thought of people as the investments in the profits of the …show more content…
Another limitation that can be found is the attractiveness of the market or industry is usually determined by the market growth only, but there will be many more factors that can be used in order to determine the market growth rate. The examples of the other factors are based on the resources, abilities and temperament that are particular to each business (Healy, …show more content…
Before reaching to the transformation of the modern eras, the BCG model only used to analyze about one or two separate divisions in their business (Healy, 1955). Thus, it also may be adapted to provide some approaching into the smaller businesses.
Generally, the BCG model can be used by the small to medium-sized businesses which require them to calculate the position of the individual products rather than SBUs and also using the growth of the individual market segments for each of the products that is important for the market share or industry growth rate aspect. According to Healy (1955), he said that in order to estimate the relative market share growth rate, the direct other brand competitors can be used for each of the