BCG MATRIX

Presented to: Ms. Saguna Khajuria

Presented by: Preeti Roy
Introduction 
The Boston Consulting Group (BCG) Matrix is
an uncomplicated tool to evaluate a

company’s position in terms of its product

range. 

It facilitates a company think about

its products and services and makes
decisions about which it should keep, which
it should let go and which it should invest in
further.

BCG matrix takes into account two strategic

parameter into consideration namely, market
share and market growth.
Market Share
• Market share is the percentage of the total market that is being
serviced by a company under consideration, measured either in
revenue terms or unit volume terms.
•  The Boston Matrix assumes that if the company under consideration
is enjoying a high market share, then it will be making more money.
Market Growth
• Market growth is used as a measure of a market's attractiveness.
Markets experiencing high
• growth are ones where the total market is expanding, meaning that
it’s relatively easy for
• businesses to grow their profits, even if their market share remains
stable.
BCG Matrix
Question mark
• Don't have a large market share in a growing market
Question marks are essentially new products Question
Marks might become Stars and eventually Cash Cows It
need to increase their market share, or they become dogs.
 Dogs

• Market presence is weak. Do not enjoy the

scale economies. Dogs should be avoided
and minimized.
Stars:
  Well-established in the growing market Strong opportunities.
Cash Cows
Well-established in the market. Market
isn't growing, opportunities are limited.
Due to low growth, promotion &
placement investments are low.
Disadvantages. 
• The model uses only two dimensions
(i.e., growth and share) to assess
competitive position, others are
ignored.
• More focus on balancing cash flows
rather than other interdependencies.
• More emphasis on cost leadership
rather than differentiation as a source
of competitive advantage.
• Poor correlation between market
share and profitability.
• A high market share does not
necessarily lead to profitability at all
times.
• Low share or niche businesses can be
profitable too (some Dogs can
be more profitable than cash Cows).