Additionally, the matrix can assist companies in identifying new products to introduce to the market. The BCG matrix provides a structured approach for evaluating each product's success, enabling businesses to determine which products to invest in further and which ones to eliminate. While businesses typically offer a range of products, not all of them generate the same returns. It offers a framework for analyzing the performance of each product, identifying opportunities for growth, and determining where resources should be allocated for the future. What is the BCG matrix (Growth Share Matrix)?Ī BCG matrix is a strategic planning tool used to assess a business's product portfolio. So, let's dive into the world of BCG matrix and learn how to use it to make informed strategic decisions.
Additionally, we will provide a practical BCG matrix example of how to create a BCG matrix to help you apply this tool in your own business analysis. In this article, we will discuss the four quadrants of the BCG matrix and their significance, the strategic implications of each quadrant, and how to use BI software to effectively create BCG matrix. The BCG matrix, also known as the Growth Share matrix, or the Boston Consulting Group matrix, is a simple yet powerful framework used to evaluate a company's product portfolio and determine which products to invest in and which to divest.
