51. Boston Consulting Group Model
Concept
The Boston Consulting Group created one of the more popular strategic analysis tools, the Product Portfolio Matrix. The premise of this analytic framework is that a company’s market share in an industry is a rough measure of its ability to generate cash flow. The related concept was that taking market share away from others in the industry was expensive— because you were fighting against elements of the Ansoff Model, namely that companies that have existing products selling to existing customers have an advantage over competitors with those products and those customers. Established relationships are stronger than new relationships.
So, market share was a placeholder for available cash while market share ...
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