How should a company approach its "Stars" in the BCG matrix?Divest immediatelyInvest to maintain leadershipReduce investment and harvestHold and maintain
Question
How should a company approach its "Stars" in the BCG matrix?Divest immediatelyInvest to maintain leadershipReduce investment and harvestHold and maintain
Solution
In the BCG Matrix, "Stars" are products that have a high market share in high growth markets. Here's how a company should approach its "Stars":
Invest to maintain leadership: Stars are the leaders in the business and require attention to ensure they maintain their lead. This often means investing substantial resources to keep up with high market growth and fend off competitors.
The company should focus on these products and invest in them to ensure they maintain their market position. Over time, as market growth slows, these Stars could potentially become Cash Cows if they maintain their market share.
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