Bcg Matrix Analysis - 2570 Words

BCG Matrix Model BCG Matrix Model The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970s. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor. When should I use the BCG matrix model? Each product has its product life cycle, and each stage in†¦show more content†¦But BCG Matrix is not free from limitations, such as- 1. BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected. 2. Market is not clearly defined in this model. 3. High market share does not always leads to high profits. There are high costs also involved with high market share. 4. Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. 5. At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes. 6. This four-celled approach is considered as to be too simplistic. source: http://www.managementstudyguide.com/bcg-matrix.htm Rate This Answer BCG MATRIXShow MoreRelatedMatrix And Analysis : Bcg Matrix1361 Words   |  6 PagesBCG Matrix Business Unit Matrix and Analysis This matrix chart seeks to help companies analyze their individual business units or product lines to determine how to allocate internal resources. This matrix is used most frequently in brand marketing, product management, and strategic management within an organization. The matrix divides each product or business unit into four different categories based on a combined analysis of market growth and market share (Rothaermel, 2015; Ioana, Mirea, BalescuRead MoreSwot Analysis : Bcg Matrix1565 Words   |  7 Pagesdescription of two planning techniques. The first one is BCG matrix followed by SPACE matrix. BCG matrix This matrix’s name stands for Boston Consulting Group and it’s a framework, which is used as a planning tool that helps organisations evaluating the strategic position of the business’ brand portfolio and their potentials. It classifies business portfolio into four categories based on industry attractiveness and competitive position. The BCG matrix’s purpose is to help an organisations having betterRead MoreMarketing Analysis Using Bcg Matrix1760 Words   |  8 PagesMarketing Analysis Using BCG Matrix Introduction BCG matrix is also referred to as growth share matrix, Boston matrix, portfolio diagram or product portfolio. 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