MS-Excel & MS-Word Templates User Guide
In the early 1970’s the Boston Consulting Group (BCG) developed a model for managing a portfolio of different strategic business units (SBUs) or major product lines. The BCG Growth-Share Matrix is a four-cell (2 by 2) matrix used to perform business portfolio analysis as a step in the strategic planning process. .
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BOSTON CONSULTING GROUP (BCG) GROWTH-SHARE MATRIX
MS-Excel & MS-Word Templates User Guide
1 INTRODUCTION
In the early 1970’s the Boston Consulting Group (BCG) developed a model for managing a portfolio of different strategic business units (SBUs) or major product lines. The BCG Growth-Share Matrix is a four-cell (2 by 2) matrix used to perform business portfolio analysis as a step in the strategic planning process. The BCG Growth-Share Matrix positions the various SBUs/product lines based on Market Growth Rate and Market Share relative to the most important competitor.
The BCG matrix provides a framework to compare many SBUs/product lines at a glance and for allocating resources between the different SBUs or product lines. SBUs/Product Lines with a relative high market share in a high growth market are designated as Stars. SBUs/Product Lines with a relative high market share in a low growth market are designed as Cash Cows SBUs/Product Lines with a relative low market share in a high growth market are designated as Question Marks or Problem Children. 1
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SBUs/Product Lines with a relative low market share in a low growth market are designated as Dogs.
A different strategic and investment approach is taken for each of the four different categories. Cash Cows typically have large market shares in mature, slow