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BOSTON CONSULTING GROUP (BCG) MATRIX
Matrix are designed specifically to enhance a multidivisional firms efforts to formulate strategies
As shown in the diagram thequadrants indicate the position where determined factor has to be:
 
 
Quadrant I: Question Marks
Quadrant 11: Stars
Quadrant III: Cash Cows
Quadrant IV: Dogs
 
 
Question marks: Is refer that it has a low relative market position, in this quadrant the firm should implement an intensive strategy like: Market penatration, market development or product development
 
Stars: Represents the organizations best long-run opportunities for growth and profitability. the firm should implement strategies like: forward, backward, horizontal and bacward integraation,market penetration or market development
 
Cash Cows: Means thtat it has a high relative market share position but compete in a low grothw industry The strategies that the organization should implement are product development or diversification
 
Dogs Means that the organization has a low relative marketh share position and compete in a slow or no market groth  industry. The organization should implement strategies like retrenchment, liquidate or divested

The subdivisions amazon and Andean are located in the Quadrant I, it is question marks, that means it have a low relative market share position, yet the compete in a high-growth industry. This reveals that the company’s' cash needs are high and the cash generation is low. The most recommend strategies are market penetration, market development, or product development.

 

But as we can see, the subdivision of Caribean destination is located in Quadrant II, which means is consider "star". This represent the organization's best long-run opportunities for growth and profitability. This division has a high relative market share and a high industry growth rate and because of this should receive substantial investment to maintain or strengthen the position. The best alternatives are foward, backward, and horizontal integration. Also, market penetration, market development and product development.

 

Ecotravel decided to implement strategies according to market penetration, market development and product development .

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