BCG Matrix exampleIn this example, a retailer with five business portfolios is considered. Their five portfolios include:A chain of supermarketsA set of department storesA convenience store chainA range of specialist fashion stores andA chain of juice barsAs you can see from the BCG matrix, the firm has:One cash cow – their supermarketThey have two stars […]

The BCG matrix and relative market shareThe BCG matrix is built around two dimensions – namely market growth rate and relative market share.Market growth rateMarket growth rate is designed to be a measure of market attractiveness and potential. Growth markets provide opportunities to a firm because they are getting much larger, but also because there

Overview of the BCG MatrixThe BCG Matrix is a portfolio model developed by the Boston Consulting Group (BCG) in 1968. It has been popularized over time through inclusion in many strategy and marketing textbooks.One of its prime appeals is that it communicates an important element of strategy – that is, the role of competitive strengths

The output of the BCG matrix classifies businesses or brands or products into one of four quadrants.Each of these four quadrants are defined by the intersection of two marketing metrics – namely the market growth rate (a measure of market opportunity and potential) and relative market share (a measure of competitive strength).The four quadrants that

Plotting Apple on the BCG matrixBecause Apple run a relatively limited line of products it is quite simple to plot their portfolio of products onto the BCG matrix. Perhaps the findings might be a little bit surprising, but it does go to highlight the inadequacies and limitations of the BCG matrix at times.Apple and the

The BCG matrix and Competitor AnalysisThe BCG matrix can be utilized to help analyze competition. This makes a lot of sense, given that one of the key determinants of classifying a product into one of the four quadrants is relative market share – therefore, the outcomes of the BCG matrix are based around this competitive

The BCG matrix is not designed to be a static model and it can be used to track portfolios over time. This is important because relative market share and market growth rates are dynamic. It also allows the tracking of the products portfolios against overall goals and against  competitors over time.Most likely transition in the

The concept of the product life cycle is fundamental to understanding how product portfolios will evolve over time through the quadrants of the BCG matrix.Conceptually, the product life cycle, suggests that most product portfolios will categories will progress through different stages of rates of growth – from introduction to growth to maturity and then to

The BCG matrix and the experience curve are highly interrelatedThe BCG matrix and the experience curve are highly interrelated. The BCG matrix relies upon the relative market share metric as its indicator of competitive strength. The greater market share advantage, then the greater the amount of profitability generated by the portfolio/firm.What is the experience curve?The

Here is the instructional video on how to use the free BCG matrix maker available for download on this website. In the video, you will see two approaches to preparing the BCG Matrix.Version one is for use when you have actual market data and version two is suitable when you don’t have the data but