Question

Four reasons why firms strategically keep dogs in their business portfolio

Answer 1

Answer:

Keeping Dogs in Business Portfolio

Four Reasons:

1. Dogs may be complementing or boosting the sales of other star products.  They are good companions.

2. Dogs may be new products.  It will take time for them to become star performers.  They learn about their environment well, but it takes some time.

3. Dogs may have marginal prices that are better than the marginal cost of new products.  As always, most pet owners prefer Dogs to Cats as they are easier to relate with.

4. Dogs have been developed unlike new products that are still undergoing development, which will take some time to go to market.  Humans are more accustomed to petting dogs than cats.

Explanation:

Dogs are in one of the quadrants of the BCG Growth-Share Matrix that discusses how an entity's products can be categorized according to their market share.  Dogs are always at the center of divestiture.  But, some entities still find it difficult to let go of their cherished and sensitive companions due to the reasons enumerated above.