The bcg matrix is a tool which uses the relative market share and growth rate of the various product lines of an organization to assess the relative strength of products in a brand’s portfolio the bcg model assigns products into four categories – stars , cash cows , question marks , and dogs – quickly identifying which products need attention and helps to inform their investment strategy. The bcg matrix (growth-share matrix) was created in the late 1960s by the founder of the boston consulting group, bruce henderson, as a tool to help his clients with efficient allocation of resources among different business units it has since been used as a portfolio planning and analysis tool for marketing, brand management and strategy development. If you are working with a product portfolio, bcg growth-share matrix can give you a quick overview of how the products are doing and build a basis for further analysis to use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market.
In the report “the bcg growth matrix for bskyb” the author critically examines the bcg growth/share matrix for the british sky broadcasting group plc. What is the bcg matrix the boston consulting group’s product portfolio matrix (bcg matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products it's also known as the growth/share matrix. Bcg matrix is a framework created by boston consulting group to evaluate the strategic position of the business brand portfolio and its potential it classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share.
Created by the boston consulting group, the bcg matrix – also known as the boston or growth-share matrix – provides a framework for analyzing products according to growth and market share the.
In this article, we will look at 1) what is the bcg matrix, 2) understanding the bcg matrix, 3) how to apply bcg matrix to your company, and 4) some examples what is the bcg matrix the bcg matrix was created by bruce d henderson for the boston consulting group in 1970.
In the report “the bcg growth matrix for bskyb” the author critically examines the bcg growth/share matrix for the british sky broadcasting group plc he uses examples from the organization to demonstrate the benefits and pitfalls of using this approach. The bcg growth-share matrix is a portfolio planning model developed by bruce henderson of the boston consulting group in the early 1970's it is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the.
A bcg matrix helps organizations figure out which areas of their business deserve more resources and investment. The bcg matrix was developed by the boston consulting group in 1970 and is a planning tool that graphically represents a company’s portfolio of products and services in the hope that the company will decide which products it should keep, sell, or invest in it plots a company’s offerings in a four square matrix, where the x-axis represents.