Porter claims that there are two ways of responding to the opportunities in the external environment and developing a competitive advantage. There is no middle group because it would lead customer confused to choose how the product value they spend. The BCG matrix is a model to analyses the control on product from market share and business growth.
Based on the information in the case, for the Yellow dye would be the low cost strategy. There is no difference in all the competitor, the cost, revenue, market share and other factors would at the same level. This is a dog in BCG matrix, because all the companies produce the same product and sell product and the same price level. The market share is shared equally and it would a hard business growth in the yellow dye.
The blue dye is different from the yellow dye. Monarch, takes the product differentiation in blue TB, because of the high quality and high revenue and the high market share it is the best product in Monarch company, and the blue TB plays a star in 1981. But because of the price war between the competitors the market share drop heavily it becomes a dog in 1983.
The red dye is a little bit similar to the blue dye. Because of monarch takes the product differentiation strategy as well and because of the high market growth and high business growth. It is absolutely a star for monarch.
In my opinion, it would be no inconsistencies between BCG matrix and porters strategy (low cost / product differentiation). The porters strategy is analyze how the products compete in…