Bcg matrix model is a portfolio planning model essay
The Boston Consulting Group, BCG, designed its four-cell matrix, the BCG Matrix, to aid in long-term strategic planning. The matrix is used to assess the growth opportunities of different companies. The Boston Matrix is a model that helps companies analyze their portfolio of companies and brands. The Boston Matrix is a popular tool used in marketing and business strategy. A company with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a company. The BCG matrix can be useful to companies if it is applied using the following general steps: Choose the unit. Strategic Business Units, individual brands, product lines or the company as a whole are all areas that can be analyzed using the BCG matrix. The chosen unit drives the entire analysis and key definitions. The effectiveness of the BCG matrix as a strategic planning tool is demonstrated because it lasts for years. The model represents items or business units that may or may not warrant resources. The BCG matrix, also called 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, where to discontinue or develop products. As the name suggests, according to the BCG, there are four main strategies that organizations can pursue using the Ansoff matrix: market penetration, market development, product development and diversification. BCG matrix. The BCG matrix is a framework for analyzing a company's product portfolio, based on market growth and relative market share..