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BOSTON

CONSULTANCY
GROUP MATRIX
BOSTON CONSULTING GROUP (BCG)
MATRIX
 Business portfolio matrix that uses market
growth rate and relative market share as the
indicators of the firm’s strategic position.
 Market growth rate
A measure of the annual growth percentage
of the market in which the business
operates.
 Relative market share
The firm’s market share divided by the
market share of its largest competitor.
HISTORY OF THE BCG MATRIX

 1960’s – diversification of businesses


 Need for universal management tool
 First implementation in 1969 by Boston Consulting
Group
BCG MATRIX
BCG MODEL AND PRODUCT LIFE CYCLE
WHAT EACH OF THEM INDICATES ?
FILM INDUSTRY
LIMITATIONS

 High Market Share is not the only success factor.


 Market growth is not the on
 Sometimes Dogs can earn more cash than cash cows.

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