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BCG matrix is a portfolio planning model. This helps company to allocate resources.

According to the
situation of Relative Market share and Market growth rate, we map the various SBU, subsequently
prioritize the products, departments. The most efficient use of BCG is to know the product mix, the
presence across the quadrants present the idea to strategize for future. The limitation of this model is it
takes into consideration only profitability, expressed by questioning concept of market share. It does not
consider other elements of industry, neither the overall growth rate. Also the interlinkages of SBU is not
considered, the change of strategy may impact other units.
7S model is used to assess the internal situation in an organization. It is a successful as it reinforces the
alignment of seven skills within an organization. It builds onto standardization and proper communication.
Further, its easier to identify areas of problem. The model can be used to understand how the
organizational elements are interrelated, and so ensure that the wider impact of changes made in one
area is taken into consideration. One can strategize internal process/future changes within the company
but not much of market positioning can be done through this model, unlike in BCG.

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