## BCG Matrix Formulas and Calculations

There are relatively few calculations required in order to construct effective BCG matrix. Probably the most difficult decision is to define the market – as there are often numerous ways of defining the market, as is further discussed below.

## Using the BCG matrix for portfolio analysis

One of the prime uses of the BCG matrix is for portfolio analysis – that is, to ensure that the overall company has an appropriate mix of business units and/or product in its … Read more...

## BCG Matrix and its Four Quadrants

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 … Read more...

## Limitations of the BCG matrix

Although the BCG matrix is widely used and widely discussed in many strategy and marketing textbooks, it does carry significant practical limitations.

One of the more obvious benefits of the BCG matrix is its level of simplicity – in that … Read more...

## Benefits of the BCG matrix

#### Introduction to the BCG matrix

The BCG matrix was developed by the Boston Consulting Group in 1968. It is a portfolio matrix tool and is designed for larger companies to map, compare and analyze their existing business divisions (strategic business … Read more...

## What is the BCG matrix?

### Overview of the BCG Matrix

The 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 … Read more...

## The BCG Matrix: Where to Draw the Line?

One of the challenges with the design of the BCG matrix is the decision of what values to place the axes in order to create the four quadrants.

Unlike as suggested in other areas of the Internet, these four quadrants … Read more...

## Analysis

The details on the analysis approach to the BCG matrix have been expanded to the full menu – or use the search box.… Read more...

## BCG Matrix example

In this example, a retailer with five business portfolios is considered. Their five portfolios include:

• A chain of supermarkets
• A set of department stores
• A convenience store chain
• A range of specialist fashion stores and
• A chain