Growth Share Matrix / BCG Matrix

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The big picture:

Growth share matrix or BCG matrix was designed by the Boston Consulting Group in the 1970s. The method is well known for product portfolio planning, based on the concept of the product life cycle. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share"...

When to use it:

The BCG matrix can be useful in identifying and assessing the priorities for growth in a product portfolio of a start-up. The matrix consists of two elements: market share and market growth. Hence, products are assessed based on these elements, and each is then classified in one of four categories: stars, cash cows, question marks and dogs. The fundamental premise of the method is to invest in beneficial growth (economic) opportunities for a start-up...

How to Use the Tool:

The Boston Matrix categorizes opportunities into four groups, shown on axes of Market Growth and Market Share...

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