Question

Discuss and illustrate how the Boston Consulting Group Market Growth Rate-Relative Market Share matrix can be applied in the following case: The University Teaching Hospital (UTH) is by far the largest public hospital in Zambia. However, as is common knowledge, it cannot cope with the thousands of numbers of patients who knock on its doors seeking treatment ostensibly because it has no capacity.

Answer 1

The BCG matrix help scompanies decide in which of their business they should invest and which of the business they should ideally shut down.

In this case, As can bee seen that the hospital is the largest of the [ublic sector hospital in Zambia, so it enjoys a high market share but the growth is limited or low as it has maximum capacity to which it can accomodate the patients.

So as per BCG matrix, it falls under High market share and low growth matrix and thus acts as a cash cow with very low future growth rate potential

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