2. BCG Matrix
• Matrix is developed by Bruce Henderson for
Boston Consulting Group in 1970.
• According to this technique, businesses or the
products are classified as low or high
performers depending upon their market
growth rate and relative market shares.
• It is used to identify how corporate cash
resources can be best used to maximize future
growth and profits.
3. Main Tools in BCG Matrix
• Market Share : It is the percentage of the total
market that is being survived by your company,
measured in the terms of revenue or volume.
• Market Growth : It is used as measure of a market’s
attractiveness.
5. Components of BCG Matrix
Star :- Stars operate in high growth industries and
maintain high market share. Stars are both cash
generators and cash users.
Question Mark(?) :- Question marks are the brands
that holds low market share in fast growing markets
consuming large amount of cash and incurring losses.
Cash Cow:- Cash cows are usually large corporations
or SBUs that are capable of innovating new products or
processes, which may become new stars.
Dog :- Dogs hold low market share as compared to
competitors and operate in a slowly growing market.
They are at declining stage.
7. Steps of BCG Matrix
Step 1. Choose the unit
Step 2. Define the market
Step 3. Calculate relative market share
Step 4. Find out market growth rate
Step 5. Draw the circles on a matrix
9. • The GE Nine cell Matrix is also known as
McKinsey Matrix.
• It was developed by McKinsey.
• It is 9 cell (3 by 3) matrix.
• It is used to perform business portfolio
analysis for classifying product lines or SBU’s
within a large company.
GE Nine cell Matrix
10. Tools of GE Nine cell Matrix
1) Attractiveness of
Industry
2) The Strength of
Business
