BCG matrix is a useful strategic planning model developed by Boston Consulting Group in 1970s. The BCG Matrix - or Boston Matrix - was developed by The Boston Consulting Group in the late 60s as a way for companies to develop strategies for their different product lines. One criticism of the Boston Matrix is that the term 'Dog' is unnecessarily pejorative and derogatory. Like Ansoff’s matrix, the Boston Matrix is a well known tool for the marketing manager. The BCG Matrix (also know as the Boston Matrix, growth-share matrix, product portfolio matrix, Boston Box, Boston Consulting Group analysis, portfolio diagram) is a chart that helps businesses analyse different products in their portfolio. It divides products into four categories based on their market share and market growth. The Boston Matrix! BCG growth-share matrix classifies different business units or products into 4 different categories like Dogs, Stars, Cash Cows and Question Mark. In this article, we will look at 1) what is the BCG Matrix, 2) understanding the BCG Matrix, 3) how to apply BCG Matrix to your company, and 4) some examples. An example of a product that can be classified as 'Star' in the BCG Matrix is the LED lamp from Philips. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). get custom paper. BCG matrix. You can proceed company analysis based on their share in the relevant market segment and in the market growth rate. Looking at the Boston Matrix I can see that Sainsbury's taste the difference range have a high market share and are on a mature level from customers. pub, 72 KB. It is often used to prioritize which products or services within a company’s product mix get more funding and attention. The Boston Matrix. Updated: Nov 5, 2014. ppt, 1 MB . If you are already familiar with the matrix, feel free to skip right to the end where we have a download link for the BCG matrix template. The dogs in the BCG Matrix are products at the end of the product lifecycle, or products that have had to compete against the competition. The free BCG matrix template – version 1. BCG Matrix of Apple. The Boston Consulting group's product portfolio matrix (BCG matrix) is a business tool, which uses relative market share and industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. Stars – Stars are the strong ones. … Cash cows are those business products which are a significant source of income for a business entity and generate … Type of diagram: Matrix Template. If Apple can solve a few ecosystem problems, they could really own the TV space. The other name is Ansoff Matrix. The Boston Consulting Group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. 1. WHAT IS THE BCG MATRIX? This matrix offers a simple technique for assessing your firm’s position relative to others in terms of its product range. The BCG matrix has further identified those business units that have become a source of continuous loss for the organization. The ‘BCG growth-share matrix’ positions different product lines based on Market Growth and Market Share in relation to the main competitor. It is used for business portfolio analysis. In the BCG matrix, SBU(Strategic Business Unit) is a company that has a separate mission and objectives and can be planned independently from other company businesses. They are grouped in topical sets as Business Diagram templates. doc, 147 KB. Moreover, these business units or products are not likely to offer any significant growth to the organization in terms of sales or market share. The BCG matrix was developed by the Boston Consulting Group in 1970 and is a planning tool that graphically represents a company’s portfolio of products and services in the hope that the company will decide which products it should keep, sell, or invest in. The Boston Matrix The Boston Matrix is a tool used by marketing managers to make decisions on which products within their portfolio that they should market and under what category on the Boston Matrix they fall into. Preparing Data to BCG Matrix. Boston Consulting Group (BCG) Matrix. Created: Feb 10, 2010. pub, 72 KB. Investment could involve a relaunch of the product, creating a new image that fits the consumer profile better, or some redesigning of the product or service in response to changing market conditions. The BCG matrix is a tool to evaluate the products of a company, and thereby help to decide where the company’s resources can best be allocated to maximize profits in the future. Understanding Problem Child . An organization may continue to produce a Dog, even though its profitability is marginal, because of its synergy with other product offerings. It is a common template used by many marketing and strategic consultants. Visit our Marketing Theories Page to see more of our marketing buzzword busting blogs. The growth-share matrix is also called the BCG Matrix or Boston Matrix and the problem child may also be referred to as a "question marks". Tagged on: Boston Matrix Template. The Boston Consulting Group Matrix (BCG Matrix) can be used to analyze the different products being sold by the company in terms of their market share, sales generated on an annual basis and the potential for growth. Free. There are tons of rumors of an Apple TV product that might just maybe dominate like the iPod/iPhone/i Pad Rising Star -The iPhone and i Pad are rising stars. The type of output BCG matrix would be as shown here. The Boston Matrix!