The Boston Matrix makes a series of key assumptions: Market share can be gained by investment in marketing.

Market share gains will always generate cash surpluses. Cash surpluses will be generated when the product is in the maturity stage of the life cycle.

## What is Boston Matrix used for

The Boston Consulting group’s product portfolio matrix (Bcg matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or develop products.

## Who invented the Boston Matrix

BCG’s founder, Bruce Henderson, popularized the concept in his essay The Product Portfolio, in 1970.

At the height of its success, the growth share matrix was used by about half of all Fortune 500 companies; today, it is still central in business school teachings on business strategy.

## What variables does the Boston Matrix analyse

BCG Matrix (also known as the Boston Consulting Group analysis, the Growth-Share matrix, the Boston Box or Product Portfolio matrix) is a tool used in corporate strategy to analyse business units or product lines based on two variables: relative market share and the market growth rate.

## What are the four stages of the Boston Matrix

The Boston Matrix describes the impact of market share and market growth on businesses by using four categories: dogs, cash cows, question marks (or problem children) and stars.

## What are the 4 areas of Boston Matrix

The BCG growth-share matrix contains four distinct categories: “dogs,” “cash cows,” “stars,” and “question marks.”

The matrix helps companies decide how to prioritize their various business activities.

## What are the two criterion on which the Boston Consulting matrix is based define them

The matrix reveals two factors that companies should consider when deciding where to invest—company competitiveness, and market attractiveness—with relative market share and growth rate as the underlying drivers of these factors.

### What are the disadvantages of Boston Matrix?

- Market growth rate is not an accurate measure of a market’s attractiveness to a business
- Market share doesn’t actually predict how much cash a product generates
- It does not account for external factors, known as environmental factors

## What are the features of a star in the Boston Matrix

Stars consume a significant amount of cash but also generate large cash flows. As the market matures and the products remain successful, stars will migrate to become cash cows.

Stars are a company’s prized possession and are top-of-mind in a firm’s product portfolio.

## What is a cash cow in the Boston Matrix

A cash cow is also one of four quadrants in the BCG matrix, which looks at the value of different units within a corporation.

Cash cows are part of mature, slow-growing industries, have a large chunk of the market share and require minimal investment to thrive.

## What is problem child in Boston Matrix

Problem child is a quadrant in the BCG Matrix and is the triage category among the cash cows, stars, and dogs.

A problem child is a business line that has good growth potential but a small share of the growing market.

## Could you please explain the BCG matrix to us and how might you use it

The BCG Matrix was developed by the Boston Consulting Group in 1986 in order to evaluate and analyze the business units and product offerings of corporations.

Companies can use this simple 2 x 2 matrix as an analytical tool in portfolio analysis, strategic management, product management, and brand marketing.

## What is Boston Consulting Group famous for

BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

## What is BCG matrix example

We use Relative Market Share in a BCG matrix, comparing our product sales with the leading rival’s sales for the same product.

For example, if your competitor’s market share in the automobile industry was 25% and your firm’s brand market share was 10% in the same year, your relative market share would be only 0.4.

## What is the BCG matrix quizlet

BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential.

Cells of the boston matrix. Raising stars, Cash Cows, Question marks and Dogs. Market Share.

## How the BCG matrix is linked to change and strategy

The BCG matrix, also known as the Boston growth-share matrix, is a tool to assess a company’s current product portfolio.

Based on this assessment, the Boston matrix helps in the long-term strategic planning of the company’s portfolio, as it indicates where to invest, to discontinue or develop products.

## What is the parenting matrix

Parenting Fit Matrix composes of 2 dimensions: Positive contributions that the parent can make and the negative effects the parent can make.

The combination of these two dimensions create 5 different positions: Heartland Businesses. Edge-of-Heartland Businesses.

Ballast Businesses.

## What is PLC matrix

Product Life cycle Matrix in Strategic Management. The product life cycle portfolio matrix is specifically designed to deal with the criticisms that the BCG matrix ignores products that are new, and that it overlooks markets with a negative growth rate, i.e. markets that are in decline.

## What is BCG matrix What are its uses and limitations

The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many other business units.

But, BCG matrix is not free from limitations.

## Who is using the BCG matrix chart

Who Should Use the BCG Matrix? The BGG matrix is mainly used by internal management that has more than one product competing for resources.

It can inform a number of different business functions including marketing, strategy, and portfolio planning.

## What is tow Matrix

TOWS matrix can be defined as a framework to create, compare, decide and access business strategies.

It stands for Threats, Opportunities, Weaknesses and Strengths. It examines a business from an approach that references marketing and administration.

## What is the importance of using BCG matrix for Apple

BCG Matrix of Apple analyzes its products to classify them as low growth products, high selling products, high growth products, and high selling but low growth products.

## Is BCG matrix still relevant

Even though the BCG Matrix has fallen from grace, it is still alive and has left an imprint on management education and practice.

Despite being largely discredited in academic circles, many practitioners still view it as an important corporate portfolio planning technique.

## What is GE matrix with example

The GE-McKinsey Matrix (a.k.a. GE Matrix, General Electric Matrix, Nine-box matrix) is a portfolio analysis tool used in corporate strategy to analyze strategic business units or product lines.

This matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix.

## Which company used BCG matrix

We created The BCG Matrix of Nestle, keeping its broad product portfolio in mind.

We identified the Matrix’s various components, namely- Star, Cash Cow, Question Mark and Dog.

## What does the BCG matrix provide to management decision makers

A business portfolio management tool, the BCG matrix makes it possible to set priorities in terms of investment and actions on products (launch, maintenance or discontinuation).

It is therefore a decision support tool. It is also used to check the consistency and balance of the portfolio of products or activities.

## Who created the Ansoff Matrix

The matrix was first described by Igor Ansoff in ‘Strategies for Diversification’ (Harvard Business Review, September–October 1957, p.

114). It is useful because it provides a simple framework which encapsulates all the strategic directions an organisation can adopt in one analytical tool.

## What would you use a BCG matrix to perform quizlet

It looks at two dimensions, market share and market growth, in order to assess new and existing products in terms of their market potential.

## How are the BCG matrix and IE matrix similar

The IE Matrix is similar to the BCG Matrix in that both tools involve plotting a firm’s divisions in a schematic diagram; this is why they are both called portfolio matrices.

## What is GE nine cell matrix in strategic management

The GE 9 cell matrix is a way of structuring an organization’s strategy into manageable segments.

The GE 9 Cell Model is a process of establishing the organization’s current position in the market.

It can then evaluate each of its strategies and choose a course of action to take.

## What is an example of a dog in BCG matrix

Due to low market share, these firms face cost disadvantages. Therefore, in such situation, managers need to decide whether the investment currently being spent on keeping these products alive, could be spent on making something that would be more profitable.

Diet coke, a Coca-Cola product, is on such example of Dogs.

#### References

https://www.thedigitaltransformationpeople.com/channels/customer-engagement/ansoff-matrix-4-key-areas-to-understand-marketing-risks/

https://link.springer.com/chapter/10.1007/978-1-349-13877-7_24

https://theintactone.com/2019/02/25/bps-u4-topic-2-stop-light-strategies-model/

https://www.bcg.com/about/overview/our-history/growth-share-matrix