boston consulting group Flashcards
what is the need for boston consulting group matrix
-Management must assess existing products and services for market growth and profit potential.
-The BCG matrix incorporates the concept of the product life cycle, so it is a useful tool which helps us assess products.
-the model can also be used to assess the strategic position of strategic business units (SBUs), particularly useful to those organisations which operate in a number of different markets and offer a number of different products or services.
what exactly is the BCG matrix
-it offers an approach to product portfolio planning.
-it has two axes, 1) market share and 2) market growth low or high
-company has to consider each product and place it in the matrix
-we will compare market share with other competitors
-we will see if market is growing quickly or matured or declining
