This is shown in the chart to the right.Įach of the four quadrants suggests a different strategic approach. The resultant portfolio analysis can then be roughly divided into 4 quadrants. That is, you would choose one of these criteria, say product, and then chart all of the organisation's products relative to each other. Sources of value could be business units, products, services, customer segments or channels. the rate at which that market is growing.In its simplest form, the BCG matrix charts each source of value by: In so doing, it helps to facilitate more nuanced strategic analysis. The model shows that not all parts of a portfolio business are strategically equal. The BCG matrix is named after the Boston Consulting Group. It is a strategy analysis tool which helps to understand the strategic options available across a portfolio of different:
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