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. In terms of constructing the BCG matrix after the market definition, there are two calculations required, … Read more…

Good and poor BCG Matrix portfolios

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 overall portfolio. In this article on the BCG matrix and portfolio analysis, both good and … 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 market opportunity and potential) and relative market share (a measure of competitive strength). The four … 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 it only has two dimensions and four quadrants – and its easy ability to recall … 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 units) or sets of products. The Boston Consulting Group matrix is also known as the … 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 is that it communicates an important element of strategy – that is, the role of … Read more…