Boston consulting group matrix definition.
Concept of bcg matrix.
Today it is still central in business school teachings on strategy.
The growth share matrix aids the company in deciding.
Devised as a portfolio planning tool or corporate planning tool the bcg growth share matrix was first conceived by bruce henderson of the boston consulting group back in the 1970 s.
At the height of its success the growth share matrix was used by about half of all fortune 500 companies.
Boston consulting group bcg matrix is a four celled matrix a 2 2 matrix developed by bcg usa.
It classifies business portfolio into four categories based on industry attractiveness growth rate of that industry and competitive position relative market share.
A commonly used bcg matrix example is that of coca cola.
The boston consulting group bcg matrix is a tool used to assess the organisation s market position relative to its competitors in terms of its product service range lynch 2006.
The bcg growth share matrix is a tool used internally by management to assess the current state of value of a firm s units or product lines.
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.
Bcg matrix is a 2x2 matrix bifurcating products based on high and low growth rate and market share.
Bcg matrix is a framework created by boston consulting group to evaluate the strategic position of the business brand portfolio and its potential.
It provides a graphic representation for an organization to examine different businesses in it s portfolio on the basis of their related market share and industry growth rates.
Boston consulting group matrix description the full technique overview will be available soon.
First the relative market share that a certain product or its business unit has with respect to the competition.
Developed by bruce henderson of boston consulting group in the early 1970s bcg matrix is a strategic tool to analyse a business s portfolio on the basis of relative market share and industry growth rate.
The growth share matrix was created in 1968 by bcg s founder bruce henderson.
Bcg matrix is a performance measurement tool for the products of a company.
The bcg matrix is an assessment model in which products or functional business units are assessed on two features.
It is the most renowned corporate portfolio analysis tool.
Second the market growth potential for that product or its business unit.