The BCG (Boston Consulting Group) Matrix is a strategic tool used by companies to analyze their product portfolio and make decisions based on market growth and market share. It helps in identifying which products to invest in, develop, maintain, or discontinue.
Why BCG Matrix Analysis Is Crucial:
When to Use BCG Matrix Analysis:
Key Components of BCG Matrix Analysis:
Market Growth Rate:
Relative Market Share:
The Four Quadrants:
Stars (High Growth, High Market Share):
Question Marks (High Growth, Low Market Share):
Cash Cows (Low Growth, High Market Share):
Dogs (Low Growth, Low Market Share):
Conducting a BCG Matrix Analysis:
Tips for Effective BCG Matrix Analysis:
Outcome: A well-executed BCG Matrix Analysis provides a visual overview of where a company's products stand in the market, guiding strategic decisions that align with overall business goals and market dynamics.