2. Introduction
The Boston Consulting Group (BCG) Matrix is
an uncomplicated tool to evaluate a
company’s position in terms of its product
range.
It facilitates a company think about
its products and services and makes decisions
about which it should keep, which it should
let go and which it should invest in further.
BCG matrix takes into account two strategic
parameter into consideration namely, market
share and market growth.
3. Market Share
• Market share is the percentage of the total market that is being
serviced by a company under consideration, measured either in
revenue terms or unit volume terms.
• The Boston Matrix assumes that if the company under consideration
is enjoying a high market share, then it will be making more money.
4. Market Growth
• Market growth is used as a measure of a market's attractiveness.
Markets experiencing high
• growth are ones where the total market is expanding, meaning that
it’s relatively easy for
• businesses to grow their profits, even if their market share remains
stable.
6. Question mark
• Don't have a large market share in a growing market
Question marks are essentially new products Question
Marks might become Stars and eventually Cash Cows It
need to increase their market share, or they become dogs.
7. Dogs
• Market presence is weak. Do not enjoy the
scale economies. Dogs should be avoided
and minimized.