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BCG matrix (also referred to as Growth-Share Matrix) is letter a portfolio planning worthy used to canva the products fashionable the business’s portfolio according to their growth and relational market share. The model is supported on the notice that a company’s business units nates be classified into four categories:
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When was the BCG Growth Share Matrix created?
Devised as a portfolio planning tool, or corporate planning tool, the BCG growth-share matrix was first conceived by Bruce Henderson of the Boston Consulting Group back in the 1970's. The concept is based on four quadrants in which a company's strategic business units (SBU) or products/brands are classified.
How is a BCG matrix used in business planning?
BCG matrix (also referred to as Growth-Share Matrix) is a portfolio planning model used to analyse the products in the business’s portfolio according to their growth and relative market share. The model is based on the observation that a company’s business units can be classified into four categories:
Is the BCG model too simplistic for small businesses?
The BCG Model is seen as simplistic and it can be difficult to classify products in smaller businesses where the relative market share is too small to quantify. It’s also based on the concept that market share can be achieved by spending more on the marketing budget.
Who is the founder and CEO of BCG?
Bruce Henderson, the founder of BCG, was an innovator that back in the 1960s, proposed alternative business ideas that also became part of its trademark. Ideas like The Product Portfolio (aka BCG Matrix or growth-share matrix) and time-based compensation, would become sort of the main trademarks of its brand.
Last Update: Oct 2021
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19.10.2021 02:36
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