Categories: Strategy

The Boston Consulting Group (BCG) Matrix

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p>The BCG matrix is a tool for the management of organization business portfolio developed by Bruce Henderson of the Boston Consulting Group in 1970s&period; The BCG matrix position the business units into the matrix based on relative market share and growth rate of industry&period; The Organization can track the business unit performance based on cash inflows and outflows by using BCG matrix&period;<&sol;p>&NewLine;<p>The BCG matrix is composed of four quadrants&comma; first quadrant is the question mark second quadrant is star third is cash cow and fourth is dog&period; Each business unit position is based on relative market share and growth rate of the industry&comma; relative market share can be calculated by dividing business unit market share with the leading competitors market share&period; The relative market share is positioned on X-Axis and industry growth rate on Y- Axis both are measured in percentage&period;<&sol;p>&NewLine;<p>As discussed there are four quadrants in BCG matrix each one explain the business in terms of relative market share and growth rate&period;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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