= В« Photography В» of the Location
of The Business Products
What is the BCG Matrix?
The BCG matrix, invented by Boston Consulting Group, is known as a tool that enables to classify and evaluate the products of a business. It is a making decisions tool in order to balance the activities of a business amongst those which generate profits, those who ensure progress, those which comprise the future of the firm or perhaps those who are it is heritage. With this tool you are able to specify the development policy of the organization. The matrix will placement the products/services in two ways: the rate of growth of the industry;
the market talk about of a product/service offered facing the opponents
Positioning = the company has to place each of their products/services for the matrix. Therefore it is able to obtain information on the industry share from the product or service plus the market development. Creating long-term value sama dengan the company should have a product portfolio that includes products with large growth wherever it is necessary to inject cash and products in which growth can be weaker nevertheless which create a lot of cash.
Development in market
Want investment, although emit
even more liquidity
Ought to develop fluidity,
Brings in absolutely nothing
Realizes a lot of liquidities, they
finance other activities
Difficulties to outlive, reduce almost all
costs or stop the item.
Market share on product
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LUXINNOVATION G. I. E.,
The Nationwide Agency for Innovation and Research in Luxembourg
= В« Photography В» of The
Location of the Provider's Products
Framework of the BCG Matrix
They just do not generate profits until the company makes a decision to invest methods to maintain and even increase the market share (become potential stars). There is a high demand pertaining to liquidity and the company must ask the question: Invest or perhaps give up the item? Stars