Asked by: Ahinara Leyçaur
asked in category: General Last Updated: 31st January, 2020

How does BCG matrix work?

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).

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In this way, what are the four elements of the BCG matrix?

In this four-quadrant chart, market share is shown on the horizontal line (low left, high right) and growth rate along the vertical line (low bottom, high top). The four quadrants are designated Stars (upper left), Question Marks (upper right), Cash Cows (lower left) and Dogs (lower right).

One may also ask, what two metrics are used in the BCG? What two metrics are used in the BCG portfolio analysis to evaluate the various products of a firm? Relative market share and market growth rate 25. General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares.

Also to know, what companies use the BCG matrix?

BCG Matrix: Portfolio Analysis in Corporate Strategy

  • Example: Samsung's Product Portfolio. Samsung is a conglomerate consisting of multiple strategic business units (SBUs) with a diverse set of products.
  • Relative Market Share.
  • Market Growth Rate.
  • Question Marks.
  • Stars.
  • Cash Cows.
  • Dogs.
  • BCG Matrix In Sum.

Why is BCG matrix important?

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.

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