BCG Matrix (also known as the Boston Consulting Group analysis, the Growth-Share matrix, the Boston Box or Product Portfolio matrix) is a tool used incorporate strategyto analyse business units or product lines based on two variables: relative market share and the market growth rate. By combinin...
The BCG Matrix is an assessment model in which products or (functional) business units are assessed on two aspects. First, the relative market share that a certain product or its business unit has with respect to the competition. Second, the market growth potential for that product or its ...
To sum up, the BCG matrix is a useful tool for businesses to evaluate their portfolio and allocate resources accordingly. By classifying each business unit as a star, cash cow, question mark, or dog, companies can make strategic decisions about where to invest and where to divest.And with t...
Step 5. Draw the circles on a matrix Step 1. Choose the unit.BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself. Which unit will be chosen will have an impact on the whole analysis. Therefore, it is essential to define the unit for which ...
BCG Matrix is mainly used by companies to analyse the performance of their multiple products and for decision making. Companies with very large product portfolios have one major issue – Which product to put money in and which product to take money out of? This question is answered by the BCG...