It is a simple 2*2 matrices with 4 quadrants. In this blog we will learn more about the Boston Consulting Growth-share Matrix.Īlso Read | Marketing Qualified Leads (MQLs)Ī BCG Matrix is a tool, which is used to graphically represent a company's products and services in such a way that the company can decide which one is worth the investment and which one should be cut off. In such situations a BCG Matrix can provide utmost help. They need to analyze each business segment and make decisions. For such companies planning and strategizing their next move can be a little complex.Ĭompanies have to make decisions about their investments like- whether they should continue with the product or cut off. When we consider a big company, we can see the range of different products, multiple strategies and a huge market share. The main objective was to develop a tool that would assist the companies to find out which investments in products and services are worth investment and time. The Boston Consulting Growth-share Matrix in short, called the BCG Matrix was first created in the year 1970 by Bruce Henderson and the Boston Consulting Group. The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.” “A company should have a portfolio of products with different growth rates and different market shares.
