1. PRESENTED BY:
Irshad Ahmad
MBA-3rd SEM
MWU

2. Matrix is developed by Bruce
Henderson of the Boston Consulting
Group in the early 1970’s
It is also known as growth-share
matrix.
According to this technique,
business or products are classified as
low or high performer depending
upon their market growth rate &
relative market share.

6. A business unit or products with low
market share in a growing market.
Customer do not know much about the
product.
It requires heavy investment to increase
market share.
It is called question mark because
organization is unsure whether to
strengthen them by pursuing intensive
strategy or sell them.

7. A business unit or products having high
market share in a growing market.
They are leaders in business.
It requires heavy investment to maintain its
market share.
Capable of generating enough cash to
maintain market share but sometimes need
significant investment to maintain market
share.
When market slows, it converts into cash
cows.

8. o Business unit or product with a high
market share in a mature market(low
growth market).
Foundation of the company and stars of
yesterday.
They generate more cash than
required.
They are located in an industry which is
neither growing nor declining i.e.
market is stable.

9. Cash cows business are valuable
because surplus can be used to pay
corporate dividends, finance new
acquisitions, cover administrative
expenses e.t.c
It is a cash provider(to finance star
or question marks.)

10. A business unit or product having
low market share in low growth
market.
They are cash traps, with no
potential to bring in cash.
It is a business unit in declining
stage.
Dogs are retained to keep
competitors out and sometimes
liquidated.

11. To asses
Profile of product /business
Cash demands of products
The development cycle of product
Resource allocation & divestment
decisions

12. BCG matrix is simple & easy to
understand
It helps to quickly & simply screen
the available opportunities , & help
us think about how we can make the
most of them.
It is used to identify how corporate
cash resources can best be used to
maximize company’s future growth
& profitability.

13. BCG matrix uses only two dimensions
relative market share & market
growth rate.
Problem of getting data on market
share & market growth
High market share does not mean
profits all time.
Business with low market share can
be profitable too.

24. Though BCG matrix has its limitation
it is one of the most famous &
simple portfolio planning matrix,
used by large companies having
multi-products.