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BCG Matrix :

BCG Matrix


Contents Emergence of BCG Matrix Approaches of BCG Matrix Components of BCG Matrix Applications of BCG Matrix Advantages of BCG Matrix Limitations of BCG Matrix ?

The BCG Matrix . . .:

The BCG Matrix . . . High Low Relative position (Market Share) Low High Business growth rate The Boston Consulting Group (BCG), founded in 1963, was a pioneering consulting. It introduced various concepts like ”experience curve” and ”growth-share matrix” The experience curve says that the cost would come down to certain extent cumulative production is doubled. May establishments got an idea to minimize their cost and expand their capacity aggressively. However, when inevitable market downturns occured or innovative products were introduced, the flaws of this approach became apparent Companies found themselves with excess capacity and outdated product designs, as well as reduced capacity for innovations given their previous focus on cost-cutting

Components of BCG Matrix:

Components of BCG Matrix Each of the four quadrants of the grid has different implication for the SBUs that fall into the category Stars are SBUs that compete where there is high market share and high-growth industries. Question marks are SBUs which have weak market shares but they compete in high-growth industries. Cash cows are SBUs which operate in high market shares but in low-growth industries. Dogs are SBUs which operate in low-growth industries with weak market shares. Stars ? Question marks Cash cows Dogs

BCG Matrix application:

BCG Matrix application High Low Relative position (Market Share) Low High Business growth rate Invest if needed to create cash cow Select a few Divest the others Liquidate

PowerPoint Presentation:

This is a DEMO Course On – BCG Matrix. Join MSG Premium Membership and Get Access to around 120 Courses + New courses added every week. What You Get: View All Courses Online. Download Powerpoint Presentation for Each Course. Do the Knowledge Checks for Each Course.

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