What are the four quadrants of the BCG matrix?

What are the four quadrants of the BCG matrix?

The four quadrants are designated Stars (upper left), Question Marks (upper right), Cash Cows (lower left) and Dogs (lower right). Place each of your products in the appropriate box based on where they rank in market share and growth.

How is the BCG matrix calculated?

How To Make A BCG matrix?

1. Step 1: Choose the product. BCG matrix can be used to analyse Business Units, separate brands, products or a firm as a unit itself.
2. Step 2: Define the market.
3. Step 3: Calculate the relative market share.
4. Step 4: Find out the market growth rate.
5. Step 5: Draw the circles on a matrix.

What is BCG matrix explain with example?

To get stars, for example, a company must invest in product development. If you have a star as a company, the strategy for this product must be aimed at gaining as much market share as possible. An example of a product that can be classified as ‘Star’ in the BCG Matrix is the LED lamp from Philips.

What Does stars symbolize in BCG matrix?

The vertical axis of the BCG Matrix represents the growth rate of a product and its potential to grow in a particular market. Stars: Products with high market growth and a high market share. Dogs: Products with low market growth and a low market share. Cash cows: Products with low market growth but a high market share.

What do you need to know about the BCG matrix?

The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm’s’ brand portfolioBrand EquityIn marketing, brand equity refers to the value of a brand and is determined by the consumer’s perception of the brand.

What is the Boston Consulting Group Growth Share Matrix?

The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.

How is the Boston matrix used in business?

The Boston Matrix is a model which helps companies analyse their portfolio of products, brands or SBUs. The Boston Matrix is a planning tool used in marketing and business strategy. It helps decide which products to invest cash into and which to divert.

How are SBUs allocated in the BCG matrix?

To use the BCG matrix, a company will review its portfolio of products or SBUs, then allocate them to one of four quadrants based on their market share, growth rate, cash generation and cash usage. This is then used to determine which products receive investment, and which are diversified from.