It is a strategy analysis tool which helps to understand the strategic options available across a.
#Bcg matrix free#
You can now do a BCG Matrix using - the free online, interactive, collaborative tool for business strategists. The BCG matrix is named after the Boston Consulting Group. going just because it is absorbing some of your "fixed" costs. That is, don't think that you need to keep an unprofitable product, channel etc. When considering the allocation of costs across sources of value, remember that all costs are variable in the long term.
Don't ignore cross synergies, for example, taking into consideration sources of value which may serve as loss leaders. While the BCG Matrix focuses on understanding how new products can be developed into stars and eventually cash cows, the Ansoff Matrix looks at whether or.How you define the scope of each market (for measuring market share and growth) is key to the placement of each source of value.In addition, one could vary the size with which you plot each source of value to represent, say, profitability. 5 Forces for further insight into this subject. On the other hand, Stars may lend themselves to more "Blue Ocean" strategic thinking (see for example The Strategy Canvas). Question Marks: decide to invest or exit.įor example, Cash Cows may more readily lend themselves to "Competitive" strategic thinking (see for example Porter's 5 Forces Analysis). BCG Matrix: the BCG Matrix is an assessment model in which products or (functional) business units are assessed on two features.
This is shown in the chart to the right.Įach of the four quadrants suggests a different strategic approach. In essence, it was created to provide a deeper understanding of the market share, and growth potential of a product/a brands. The resultant portfolio analysis can then be roughly divided into 4 quadrants. BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis. The BCG matrix is an efficient tool used by companies to prioritize and manage their many businesses. That is, you would choose one of these criteria, say product, and then chart all of the organisation's products relative to each other. Sources of value could be business units, products, services, customer segments or channels.
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