Boston Consulting Group Matrix

A planning tool for your business portfolio

Assess your businesses or units for growth prospects and market share

Rank and rate them from stars to dogs

Assessing your businesses

The Boston Consulting Group Matrix (sometimes called the BCG Matrix) is a strategic planing tool that examines a portfolio of strategic business units or business from a corporate planning perspective.

The matrix examines each strategic business unit or business against its market and places it into the matrix judged against two criteria:

  • The markets growth rate
  • The market share the unit or business has

The matrix has four quadrants reflecting different relationships between market share and market growth.  Each one is given a name for the type of companies in that quadrant:

  • A Star: High growth, high share
  • A Question Mark: High growth, low share
  • A Cash Cow: Low growth but high share
  • A Dog: Low growth and low share

These classifications allow diferent strategic options to be identified for each unit, depending on its strength and strategic opportunities.

Use this topic to understand the matrix in more detail and some of its implications and pitfalls.

Join and use the matrix as one of the support tools that can help you assess key strategic options

 

See also: 
Burgelman and Grove's Strategy Bet Model
PEST Analysis
Porter's 5 Forces
TOWS Analysis

Continue your learning for just a latte a week!

  • 800+ Member only career enhancing resources - and growing!
  • Bite-sized, easy, practical, fast paced learning
  • Access on the move: on your tablet, smart phone or MP3 player
  • Receive personal support from on-line coaches

Continue to build your performance improvement and career skills for as little as £1.83 (approx US$2.90) per week - about the same price as a café latte at your favourite coffee chain!  You can cancel at any time, no hidden fees or conditions.

Join Now!

easy credit card payment