You can contact EMBA Pro for detailed BCG / Growth Share Matrix analysis for Case Studies and Corporations The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.” In the Product Portfolio, 1970, Bruce Henderson, CEO of BCG Matrix, said - “A company should have a portfolio of products with different growth rates and different market shares in Software & Programming and other associated industries. During its peak of popularity in 1970’s and 1980’s, BCG matrix / Growth Share matrix was used by almost half of the fortune 500 companies. The Growth Share matrix is a business portfolio management framework that helps organization such as Microsoft in deciding – How to prioritize different businesses. It was published in BCG in-house magazine called – Perspectives. The growth share matrix was created by BCG founder Bruce Henderson in 1968. believes that BCG matrix / Growth Share matrix is highly efficient strategic tool for large diverse conglomerate. Extend the classic BCG model with predefined BCG graphics for a detailed presentation of the current market situation and convince with sophisticated designs.What is BCG / Growth Share Matrix? Introduction to BCG MatrixĪt EMBA Pro, we highly recommend Microsoft to use the BCG matrix / growth share matrix for portfolio management as Microsoft is managing diverse businesses and multiple products. We have created illustrative templates that exemplify connections and results: use detailed presentation material to inform team members about future developments and plan strategic procedures for senior management.
Identify your company’s Stars and gain higher profits by eliminating all your Dogs. Question Marks (businesses with low market shares in growing markets).Dogs (businesses with low market shares in mature markets).Stars (businesses with high market shares in growing markets).Cash Cows (profitable businesses in mature markets).The BCG matrix distinguishes four different categories to assign business divisions: This approach originates from strategic management and was developed by the Boston Consulting Group (BCG) to relate all business divisions to the current market situation.
The BCG matrix was developed to illustrate the business divisions in relation to the market situation so that meaningful investment decisions can be made.īy using the BCG matrix, market potentials and profit opportunities are assigned to different categories. The BCG portfolio helps you to put the market situation and your company units in perspective.Įvery company consists of several business divisions and needs to make decisions considering which investments are profitable. Make smart investments by using the BCG matrix and divide all business divisions into Cash Cows, Stars, Dogs and Question Marks.
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