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The BCG growth-share matrix
Most firms operate in more than one line of business. In such multi-business firms, it can be challenging to figure out how they all fit together and where the priorities for future investment might be. The BCG ‘growth-share matrix’ is a simple model to help with this analysis.
When to use it
- To describe the different lines of business within a multi-business firm.
- To help you prioritise which businesses to invest in and which ones to sell.
Origins
In the post-war era, firms in the USA and Europe had grown in size dramatically. Conglomerate firms such as ITT, GE and Hanson had started to emerge – typically they had large numbers of unrelated business, all controlled using financial measures from the centre. ...
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