Invest more or discontinue a product, unit or service? Use BCG Matrix

reogma|Invest more or discontinue a product, unit or service? Use BCG Matrix

The BCG matrix (also known as Boston Box) is a framework to assist in decision-making on existing product lines.

Developed in the 1970s, it was used to evaluate how a company should think about its portfolio on the basis of two criteria: a product's relative market share and the market growth rate that resulted in four archetypes: The Dogs, Question Marks, Stars and Cash Cows.

  • Introduction
  • Components of a BCG Matrix
  • What is a BCG Matrix used for
  • When to use BCG Matrix
  • Using the Tool
  • Example of BCG Matrix
  • BCG Matrix tips
  • Advantages and Disadvantages of BCG Matrix

Introduction

 The 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 in corporate strategy to analyze business units or product lines on the basis of two variables: relative market share and rate of market growth.

A corporation can plot its business units accordingly and determine where to allocate extra (financial resources, where to cash out and where to divest by combining these two variables into a matrix.

Therefore, the main purpose of the BCG Matrix is to make corporate-level investment decisions. Four different category labels can be attributed to each unit depending on how well the unit and the sector is doing: Dogs, Question Marks, Cash Cows and Stars.

reogma|Invest more or discontinue a product, unit or service? Use BCG Matrix


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The BCG matrix (also known as Boston Box) is a framework to assist in decision-making on existing product lines. Developed in the 1970s, it was used to evaluate how a company should think about its portfolio on the basis of two criteria: a product's relative market share and the market […]
reogma|Invest more or discontinue a product, unit or service? Use BCG Matrixreogma|Invest more or discontinue a product, unit or service? Use BCG Matrix

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