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What strategy is typically recommended for "Dogs" in the BCG matrix? Invest heavily Maintain Divest Harvest

Question

What strategy is typically recommended for "Dogs" in the BCG matrix?

  • Invest heavily
  • Maintain
  • Divest
  • Harvest
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Solution

In the BCG (Boston Consulting Group) matrix, "Dogs" are characterized by a low market share in a low-growth market. Therefore, the typical strategy recommended for "Dogs" is to Divest. This means that companies should consider selling off or shutting down these business units as they are unlikely to provide significant returns on investment.

The rationale behind this strategy is that resources (financial, managerial, etc.) allocated to "Dogs" can often be better utilized in more promising areas of the business—such as "Stars" (high market share in a high-growth market) or "Question Marks" (low market share in a high-growth market) that have the potential to become profitable. In summary, the divestment strategy allows companies to focus their resources on more lucrative opportunities.

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