The Boston Consulting Group (BCG) Growth-Share Matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in. The matrix plots a company’s offerings in a four-square matrix, with the y-axis representing the rate of market growth and the x-axis representing market share. It was introduced by BCG in 1970 as part of their portfolio analysis approach to strategic management.The BCG growth-share matrix is still used today as a valuable decision making tool for companies around the world. The basic idea behind it is that not all products or services are created equal – some are growing faster than others and have more potential for future success, while others may be declining or have already reached their peak potential. By plotting these different offerings on a graph, companies can get an overview of where they should focus their efforts based on where their products and services lie within the grid.There are several benefits to using the BCG growth-share matrix:1- It can help identify which products or services are growing quickly and performing well in terms of market share, which could lead to increased profits if invested in correctly;2- It can also help identify which products or services may be losing ground and need to be discontinued/sold off;3- The graphical representation makes it easy to see patterns and trends at a glance;4- It helps simplify complex data into easily understandable information;5- Finally, it provides direction for future product development efforts.
