▷ The boston consulting group | Actualizado octubre 2024

bruce henderson

The BCG matrix or Boston Consulting Group matrix or also known as the growth or participation matrix. It is a graphical method developed in the 1970s by The Boston Consulting Group, and is used to carry out an analysis of the business portfolio, as well as the position of a business or a product within the market.

Its purpose is to help decide approaches for different businesses or Strategic Business Units (SBU), that is, between companies or areas, especially those where we should: invest, withdraw the investment or even abandon.

The BCG matrix is structured as follows: It is divided into four cells: The SBUs in cell 1 are defined as stars, in cell 2 as question marks, in cell 3 as dairy cows and in cell 4 as dogs.

bruce hendersonamerican businessman

The Growth-Share Matrix, known as the Boston Consulting Group Matrix or BCG Matrix, is a graphical method of business portfolio analysis developed by the Boston Consulting Group in the 1970s and published[2] by the president of the aforementioned consulting firm, Bruce D. Henderson, in 1973. It is a strategic analysis tool, specifically for corporate strategic planning. However, due to its close relationship with strategic marketing, it is considered a tool closely linked to that discipline. Its purpose is to help decide approaches for different businesses or Strategic Business Units.

The method uses a 2 x 2 matrix to group different types of businesses that a particular company owns. The vertical axis of the matrix defines market growth, and the horizontal axis defines market share. Business units will then be placed in one of four quadrants based on their strategic value. These quadrants are:

rich lesserceo of boston consulting group

The Boston Matrix, also known as the Boston Consulting Group or BCG, is a graphical method of analyzing the business activity of an organization. Specifically, it acquired this name because it was developed by the Boston Consulting Group in the 1970s. It is a strategic analysis tool, specifically of the strategic planning proposed by the company with respect to its activity. However, because of its close relationship with strategic marketing, it is considered a tool closely linked to that discipline. Its purpose is to help decide approaches for different businesses or Strategic Business Units.

This matrix represents the growth of an activity in the market versus its market share. It forms a simple matrix with four quadrants, each of which proposes a different strategy for a business unit.

This is a simple matrix with four quadrants, each of which proposes a different strategy for a business unit. Each quadrant is represented by a figure or icon: star, question mark, cow and dog.

rich lesser

The enclosed image provides an example of this matrix. The horizontal dimension measures relative market share; the vertical dimension measures industry growth rate. Each circle represents a SBU. The center of each circle corresponds to the position of the NGU in the two dimensions of the matrix. The size of each circle is proportional to the sales revenue earned by each business in the company’s portfolio. The larger the circle, the greater the volume of a NGU relative to total corporate revenues.The BCG matrix shows in graphical form the differences between the divisions in terms of the relative share of the market they are occupying and the growth rate of the industry. The BCG matrix allows a multidivisional organization to manage its business portfolio by analyzing the relative share of the market it is occupying and the industry growth rate of each division in relation to all other divisions of the organization.In a BCG matrix, the position of the relative share of the market is shown on the X-axis. The midpoint of the X-axis is usually set at .50, which would correspond to a division that has half of the market owned by the leading company in the industry. The Y-axis represents the industry’s sales growth rate, measured as a percentage. The percentages of the Y-axis growth rate can range from 20 to +20%, where 0.0 is the midpoint. These