Categories: Strategy

The Boston Consulting Group (BCG) Matrix

The BCG matrix is a tool for the management of organization business portfolio developed by Bruce Henderson of the Boston Consulting Group in 1970s. The BCG matrix position the business units into the matrix based on relative market share and growth rate of industry. The Organization can track the business unit performance based on cash inflows and outflows by using BCG matrix.

The BCG matrix is composed of four quadrants, first quadrant is the question mark second quadrant is star third is cash cow and fourth is dog. Each business unit position is based on relative market share and growth rate of the industry, relative market share can be calculated by dividing business unit market share with the leading competitors market share. The relative market share is positioned on X-Axis and industry growth rate on Y- Axis both are measured in percentage.

As discussed there are four quadrants in BCG matrix each one explain the business in terms of relative market share and growth rate.

Page: 1 2

kasi

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

1 year ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago