Chapter 3. BCG Growth/Share Portfolio Matrix
Description and Purpose
Portfolio planning models are designed to help the analyst better understand the attractiveness or potential of a portfolio of distinct business units in a multi-unit business. They developed from two areas: the planning department at General Electric (GE) and the Boston Consulting Group (BCG). GE is generally credited with being the first to present a comprehensive portfolio matrix in the early 1960s.
Shortly after the initial developments at GE, BCG took the business world by storm with its introduction of its Growth/Share Portfolio matrix (BCG matrix). Its intuitive appeal and vivid imagery combined with the appearance of good quantitative analysis caught the interest of many ...