These two dimensions determine the likely profitability of the business portfolio in terms of required cash to back the unit and cash generated by it.
Two prominent dimensions like Competitive Position (Relative Market Share) and Industry Attractiveness (Growth Rate Of That Industry) are taken help to estimate the true capacity of a business brand portfolio and advice further investment programs. Growth-Share Matrix is a graphical planning tool for corporate and businesses where the company’s products and services are plotted on axes and conclude major business verdicts. Let us now understand the Boston Consulting Group (BCG) matrix in a subjective way.
However, the method is also referred to as the Growth-Share Matrix. The tool is employed in reference to the distribution of resources in appropriate segments and utilizes them in the marketing of brands, product administration, strategic management, and portfolio perceptivity. Even after 49 years of its establishment, the BCG matrix still remains a priceless apparatus for assisting companies in reaping the visions. In the year 1970, BCG shaped up a Product Portfolio Matrix to assess long term growth opportunities in the business by analyzing the product lines and thereafter untap their real capabilities. In Fortune Magazine‘s 2007 Survey of “100 Best US Companies to Work For”, Boston Consulting Group (BCG) has received the 8 th rank amongst all for their immense contribution. It helps organizations to improve their performance by working on the key areas like the right implementation of technology, development of strategies and improvement in operational services.Īs a result of their exposure and relationships with top-notch organizations, they are supremely aware of the industry’s best practices. The Boston Consulting Group is a management consulting firm that was founded in 1963. Let’s apply these steps to analyze an India Company!.
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