The vertical axis shows the market growth percentage or market attractiveness of the business. In order to measure a firm’s level of competitiveness, the horizontal axis represents the company’s market share in comparison to its main rival. The four quadrant gridīCG’s growth-share matrix plots each business on a four-quadrant grid. These mostly autonomous units have distinct strategic goals that can be addressed. The BCG model essentially sees the company as a portfolio of businesses, each of which makes a distinct contribution to growth and profitability. Growth/Share Matrix, otherwise called BCG matrix, is a critical framework used by Boston Consulting Group to investigate development opportunities by examining its item or product portfolio to decide where to invest, to discontinue or develop things. No, quite the opposite! However, its significance has evolved in order to allow adaptation to a more uncertain corporate environment, it now needs to be implemented more quickly and with a higher emphasis on strategic experimentation. Has the matrix lost its usefulness in light of the market’s current rapid and unexpected rate of change? We’re always looking for new places where we can make a difference.” Google’s company-philosophy statement
And we continue to work on making it all go even faster…. “We keep speed in mind with each new product we release…. A corporation with a wide portfolio should routinely evaluate its product lines to determine which ones are lucrative, which ones are incurring losses, and which ones require improvement. Because of this, The Boston Consulting Group created the BCG Matrix ( growth-share matrix or product portfolio matrix) to assist businesses with long-term strategy planning. Strategic planning is a necessity for every firm to succeed.
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