One axis represents the market growth rate, and the other represents the relative market share:
It is a matrix with four quadrants where you can categorize and prioritize your product portfolio. The BCG matrix is similar to other decision-making or prioritization matrices, such as the Eisenhower matrix. This enables you to make informed decisions about how to proceed with the development of each product.
What is the BCG matrix?ĭeveloped by the Boston Consulting Group in the 1970s, the BCG matrix is a tool that helps you prioritize and categorize products based on the market growth rate and relative market share. In this post, we’ll discuss the BCG matrix and how you can use it to make informed decisions about your company’s product portfolio. The Boston Consulting Group (BCG) matrix (the product portfolio matrix and the growth share matrix) can help you understand which products sell well and provide value, which products need more attention, and which products should be sold or retired. Trying to decide which products belong in that portfolio can be a daunting task.
To succeed in business, you must develop a portfolio of products or services that customers want so you can make some money.
