Also known as the BCG matrix or growth-share matrix , it was created by the consulting firm Boston Consulting Group and published by its director Bruce D. Henderson in 1973 Essential Components .
Its use allows a strategic analysis of a company’s business portfolio (products or services it sells) based on two dimensions:
Market growth rate : refers to the analysis of the demand for a product in the industry to which the company belongs. In this case, to know the total sales of the market, it will be useful to consult sector studies,
specialized magazines among
Market share rate: This is a calculation of the company’s market share , relative to the total market share of the industry. That is, your market share compared to that of your competitors.
To determine what percentage of total market sales Essential Components belong to your company, you must apply the following formula:
The formula can be applied to the company’s total sales with respect to the sector or particularly to any of the products and lines, with india telegram data respect to the total market sales for that item in the same target audience segment.
understanding the position of the customer and product portfolio compared to the competition ;
the recognition of the best and worst products in terms of return on investment ( ROI );
the determination what is target market? 4 types of audience segmentation of actions for each of the products;
promoting investment in the most promising products ;
be a starting point for other more complete Essential Components analyses, cross-referencing information – for example, the product life cycle .
There are four components of a strategic matrix
star product, cash cow, question mark and dog. They are organized in a 2 x 2 structure , that is, composed of two axes: a vertical one , which represents the market growth rate and a horizontal one , which represents the market share.
These are products that have ao lists high growth and high market share . They generate money (liquidity) and are growing.
They require investment to consolidate themselves in the market , reach the stage of maturity and become a cash cow. However, in very dynamic sectors (such as technology), products can go from being a star to a dog.
Dairy cow products
These are those that have a high market Essential Components share and low growth . They generate a lot of liquidity and require little investment. They are mature products, positioned in the market.