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The BCG Matrix - or Boston Matrix - was developed by The Boston Consulting Group in the late 60s as a way for companies to develop strategies for their different product lines. These first of these dimensions is the industry or market growth. Although the concepts of Cash Cows, Dogs, Question Marks and Stars may described are used more widely in large business they may be applied to business of all sizes. Develop BCG Matrix Strategies Based on Product Life Cycle . The matrix was invented by Boston Consulting Group (BCG) in the 1970s to help organizations with their portfolio strategy. It is a Matrix which helps in decision making and investments. The matrix will highlight what products are considered dogs - therefore you should remove all marketing budget. The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which helps in analysing the position of a strategic business unit and the potential it has to offer. The growth share matrix was created in 1968 by BCG’s founder, Bruce Henderson. The BCG Matrix: Communication Strategies. BCG Matrix Strategy for business growth is widely adopted to help a business consider growth opportunities. The Boston Consulting Group BCG Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.. The matrix consists of 4 classifications that are based on two dimensions. This framework applies two inputs, market growth and market share to a portfolio of segments, products or businesses, and then draws conclusions about how resources (e.g. This concept depends on sustaining a minimal turnover within the employees with no rise in costs. Market growth implies how attractive that market and industry are and your market share determines your position in that market /industry. It will help identify which products to promote to gain more market share. It divides a market on the basis of its relative growth rate and market share and comes up with 4 Quadrants – Cash cow, Stars, Question marks and Dogs. talent, investment) should be allocated across the portfolio. It was published in one of BCG’s short, provocative essays, called Perspectives.At the height of its success, the growth share matrix was used by about half of all Fortune 500 companies; today, it is still central in business school teachings on strategy. As I noted in the video, the dogs are those product lines in a market that is not growing and in which you have only a small market share. The BCG matrix is used in marketing strategies to identify where to invest marketing budgets. Okay, now that you understand what the BCG Matrix is and how it helps you classify your various product lines, I want to talk specifically about the dogs in your matrix and what to do with them. The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits.. Stars represent those SBU which have high market share and high market growth rate. This reduction is a result of employees raising manufacturing pace because they know more about the practice. The BCG matrix is a matrix designed by the Boston Consulting group back in 1970’s. Stars In BCG Matrix.

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