In other words, it is a comparative analysis of business potential and the evaluation of environment.īCG growth share matrix is based on the observation that a company’s business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name “growth-share”. It is a two dimensional analysis on management of SBU’s (Strategic Business Units). It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is the most renowned corporate portfolio analysis tool. Analysis of market performance by firms using its principles has called its usefulness into question, and it has been removed from some major marketing textbooks.īoston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix).
This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines.
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