What is Boston Consulting BCG matrix?
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
What two metrics are used in the Boston Consulting Group?
Terms in this set (30) -One of the most popular portfolio analysis methods, developed by the Boston Consulting Group (BCG), requires that firms classify all their products or services into a two-by-two matrix; the horizontal axis represents the relative market share, the vertical axis represents market growth rate.
How do you use the Boston Consulting Group matrix?
To use the BCG matrix, a company will review its portfolio of products or SBUs, then allocate them to one of four quadrants based on their market share, growth rate, cash generation and cash usage. This is then used to determine which products receive investment, and which are diversified from.
Is there a better approach to BCG model?
You can also apply the BCG model to areas other than your product strategy. The medium is different, but the strategy remains the same- milk the cows, don’t waste money on the dogs, invest in the stars and give the question marks some experimental funds to see if they can become stars.
What are the two concepts in the BCG portfolio on the axes of the Matrix?
BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis.
What metrics are used in the BCG portfolio analysis to evaluate various products of a firm?
portfolio analysis. 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. General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares.
What is Boston matrix used for?
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.
What is the Boston Consulting product matrix?
The Boston Consulting Group Matrix ( BCG Matrix ), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm’s’ brand portfolio. The BCG Matrix is one of the most popular portfolio analysis methods and classifies a firm’s product…
What is the Boston Consulting Group model?
Based on the Boston Consulting Group’s Growth Share Matrix , the BCG Model is a method of analysis that businesses and other organizations and use to focus on strategy, cash flow and profitability.
What does Boston Consulting Group mean?
Boston Consulting Group. The Boston Consulting Group is a global management consulting firm with 82 offices in 46 countries. The firm advises clients in the private, public, and not-for-profit sectors around the world, including more than two-thirds of the Fortune 500.
What is Boston Matrix Analysis?
The Boston Matrix is a more informal marketing tool used for product portfolio analysis and management , developed by the Boston Consulting Group in the early 1970s. It considers the degree of market share and market growth and helps identify where best to use resources to maximize profit from a product management perspective.