The image below shows the common version of the BCG matrix.

Question Marks → High Growth Low Market Share.

Cash Cows → Low Growth High Market Share.

The four quadrants of the BCG matrix are as follows. The structure of the BCG matrix plots a company’s products or strategic business units (SBUs) on a four-square matrix. BCG Growth Share Matrix: Four Quadrants Structure The BCG matrix assesses the growth opportunities available for a specific product portfolio by conducting a two-dimensional analysis based on two parameters:īy examining a product’s potential and the prevailing (and predicted) market environment, companies can make an informed decision on where to invest more capital, develop new products/services, or divest certain assets. The BCG matrix enables a company’s management team to derive insights and develop a plan to improve their current product offerings, focusing on new information about new opportunities to pursue in their current (or adjacent) markets. The BCG growth-share matrix is a framework for companies to reference when refining and prioritizing their different businesses (and strategies). The growth share matrix created by the Boston Consulting Group (BCG) is a tool for identifying new growth opportunities and making informed capital allocation decisions to achieve long-term, sustainable growth.

The Boston Consulting Matrix is based on the theory that an increase in market share will increase revenue through economies of scale.īCG Matrix Template Available Visualisationsīoston Consulting Group Matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential.The BCG Growth Share Matrix is a framework designed for companies to better understand a market’s current and future competitive landscape, which helps determine their long-term strategic plans.īCG Growth Share Matrix: Strategic Management Model The main takeaway from analysing the product portfolio of a business using the Boston Consulting Matrix is to ensure that the business invests resources wisely on products that are likely to generate superior returns. The boston consulting matrix is divided into four distinct groups or quadrants: Stars, Cash Cows, Problem Child and Dog.

Analysing products this way provides a useful insight into the likely opportunities and problems a particular product could face in the future. The second dimension measures the product’s market share relative to the largest competitor in the industry. The first dimension looks at the product's general level of growth within its market. The BCG Matrix Template assesses products on two dimensions.

Bcg matrix excel template