2
BCG matrix
The big picture
The Boston Consulting Group designed the ‘BCG matrix’ in the 1970s. It is one of the best-known methods for product portfolio planning, based on the concept of the product life cycle. It takes account of the inter-relation between market growth and market share. The underlying assumption is that a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate excess cash to ensure long-term success.
The use of the BCG matrix (see Figure 2.1) helps to identify and assess the priorities for growth in a product portfolio. The matrix ...
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