Bcg Matrix Is A Model Developed Via The Boston Consultancy Group

1691 WordsOct 23, 20167 Pages
BCG Matrix The BCG matrix is a model developed via the Boston Consultancy group within the early 1970’s. It is a good known device for an advertising manager. It 's based on the commentary that a company’s business models can be categorized into four important categories centered on combos of market development and market share, for this hence the name growth-share matrix. Market progress represents the industry attractive attractiveness, and market share stands for competitive knowledge. This helps the advertising manager allocate resources and is used as an analytical device in company advertising and marketing, product administration, strategic management and so forth. The basic idea in the back of the BCG matrix is that if a product has a greater market share, or if the product 's market grows faster, it is higher for the company. Products are classified into four distinct groups, Stars, Cash Cows, Problem Child and Dog. Let’s have a look at what each one means for the product and the decision making process Dogs (Low share, Low growth) Dogs have low market share and a low progress rate and accordingly neither generate nor consume a significant sum of money. However, dogs are cash traps because of the money tied up in a trade that has little competencies. Such companies are candidates for divestiture. Star (High share and High growth) Stars function in high growth industries and maintain very high market share. Stars are both cash generators and cash users. They

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