hwaconsumer.blogg.se - Define bcg matrix

Relative market share: This represents the company's market share relative to other companies competitor.

This can be calculated by examining historical growth rates or by analyzing current trends and potential future growth.

Market growth rate: This represents the rate at which the market for a particular product or business unit is growing.

> See more: Learn about ASK model and the benefits of the model in business Axes in the BCG Matrix

BCG is an abbreviation of the phrase: Boston Consulting Group.

Other names such as: Boston matrix, BCG.

The BCG matrix is considered as a model capable of assessing the competitive position and development potential of each product type through the SBU (business unit) analysis process. The initial assumption is that a company needs to have a product portfolio that includes both fast-growing products to meet cash-back needs and slow-growing products that can generate extra cash to ensure success. It examines the reciprocal relationship between growth prospects and market share. It is one of the most well-known product portfolio planning methods, based on the product life cycle concept. The Boston Consulting Group designed the BCG matrix (Boston Consulting Group) in the 1970s. markets and their relative market shares. The BCG matrix, also known as the Boston Consulting Group matrix, is a strategic management tool used to analyze a company's product portfolio or business units based on market growth. So what is the BCG matrix? Together Johnson's Blog More detailed analysis through this article.

BCG Matrix designed to support businesses in the process of long-term strategic planning, consider opportunities, products to decide to continue investing or stop producing that product.