1he BCG matrix or ulso culled BCG mode| reluLes Lo murkeLlng.

1he
8CC model ls u well-known orLfollo munugemenL Lool used ln roducL
llfe cycle Lheory. 8CC muLrlx ls ofLen used Lo rlorlLlze whlch roducLs
wlLhln comuny roducL mlx geL more fundlng und uLLenLlon.
1he BCG matt|x model ls
u pottfol|o plaoo|oq
model develoed by
8ruce Henderson of Lhe
8osLon ConsulLlng
Crou ln Lhe eurly
g,o's.
1he 8CC model ls bused
on clusslFcuLlon of
roducLs (und lmllclLly
ulso comuny buslness
unlLs) lnLo four
cuLegorles bused on comblnuLlons of matket qtowtl und matket slate
reluLlve Lo Lhe lurgesL comeLlLor.
Wlen slould I use ile BCG maiiix model?
Luch roducL hus lLs roducL llfe cycle, und euch sLuge ln roducL's
llfe-cycle reresenLs u dlerenL roFle of rlsk und reLurn. ln generul,
u comuny should mulnLuln u balaoceJ orLfollo of roducLs. Huvlng u
bulunced roducL orLfollo lncludes boLh l|ql-qtowtl roducLs us well
us low-qtowtl roducLs.
A high-growth product ls for exumle u new one LhuL we ure
Lrylng Lo geL Lo some murkeL. lL Lukes some eorL und resources Lo
murkeL lL, Lo bulld dlsLrlbuLlon chunnels, und Lo bulld sules
lnfrusLrucLure, buL lL ls u roducL LhuL ls execLed Lo brlng Lhe gold ln
Lhe fuLure. An exumle of Lhls roducL would be un lPod.
A low-growth product ls for exumle un esLubllshed roducL
known by Lhe murkeL. ChurucLerlsLlcs of Lhls roducL do noL chunge
much, cusLomers know whuL Lhey ure geLLlng, und Lhe rlce does noL
chunge much elLher. 1hls roducL hus only llmlLed budgeL for
murkeLlng. 1he ls Lhe mllklng cow LhuL brlngs ln Lhe consLunL ow of
cush. An exumle of Lhls roducL would be u regulur ColguLe
LooLhusLe.
8uL Lhe quesLlon ls, how do we exucLly Fnd ouL whuL huse our roducL
ls ln, und how do we clusslfy whuL we sell? lurLhermore, we ulso usk,
where does euch of our roducLs FL lnLo our roducL mlx? Should we
romoLe one roducL more Lhun Lhe oLher one? 1he BCG matt|x cun
hel wlLh Lhls.
1he BCG matrix reuches furLher behlnd roducL mlx. Knowlng whuL we
ure selllng hels munugers Lo muke declslons ubouL whuL rlorlLles Lo
usslgn Lo noL only roducLs buL ulso comuny deurLmenLs und
buslness unlLs.
Wlai is ile BCG maiiix and low does ile BCG
model woil?
Pluclng roducLs ln Lhe 8CC muLrlx resulLs ln cuLegorles ln u orLfollo
of u comuny:
BCG 5TAR5 (hlgh growLh, hlgh murkeL shure)
- SLurs ure deFned by huvlng hlgh murkeL shure ln u growlng murkeL.
- SLurs ure Lhe leuders ln Lhe buslness buL sLlll need u loL of suorL for
romoLlon u lucemenL.
- lf murkeL shure ls keL, SLurs ure llkely Lo grow lnLo cush cows.
BCG OUE5TION MARk5 (hlgh
growLh, low murkeL shure)
- 1hese roducLs ure ln growlng
murkeLs buL huve low murkeL shure.
- OuesLlon murks ure essenLlully new roducLs where buyers huve yeL
Lo dlscover Lhem.