This document summarizes the Boston Consulting Group (BCG) matrix, which is a tool used to analyze different business units within a company based on their market share and market growth. It divides businesses into four categories: Question Marks, Stars, Cash Cows, and Dogs. Question Marks have high growth but low market share. Stars have high growth and high market share. Cash Cows have low growth but high market share. Dogs have low growth and low market share. The matrix is used to determine how to allocate resources among business units.

1. BCG/PORTFOLIO MATRIX

2. The Boston Consulting Group is a leading management consulting firm which developed and popularized the growth share matrix.

3. It was first propounded by Bruce Henderson of the Boston Consulting Group in the early 1970’s.

4. It is also known as BCG matrix , Boston Consulting Group Matrix, BCG Growth-Share Matrix or Matrix Quadrants.

5. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.It is based on the assumption that a company can classify its business units into four categories based on combinations of market growth and market share.

6. The basic idea behind it is that bigger the market share a product has or the faster a product grows, the better it is for the company.41352768

7. In the above diagram the eight circles represent the current sizes and positions various business units in an imaginary company.

8. The size of the circle represent the dollar volume of each business.

9. Thus we can see that circles 5 and 6 are the two largest business.

10. The location of each business unit indicates its market growth and relative market share.

11. The market growth indicates the annual growth rate of the market in which the business operates.

12. The Growth share matrix has been divided into four cells each indicating a different type of business.QUESTION MARKSTARSCASH COWSDOGS