TEAM NO

5 Business
portfolio Matrix
BALA GANESH
JAGAN
SENTHIL VELAN
RAMESH KUMAR
VIGNESH
SNEGA PRIYA
MITHRA LAXMI
SRI SUPRITHA
Business portfolio Matrix
 The Business portfolio matrix was
developed by THE BOSTON
CONSULTING GROUP in early 1970’s

 It is based on the observation that a

company's business units can be
classified into four categories based on
combinations of market growth and
market share relative to the largest
competitor
Business portfolio Matrix
STAR HIGH GROWTH, HIGH MARKET SHARE
 Star position as sales and market share are
increased. If the investment necessary to build
sales and market share is successfully made,
then the product’s position will move towards the
star position of high growth / high market share.
 EXAMPLE
An American
multinational retailer
corporation that runs
chains of large discount
department stores and
warehouse stores
QUESTION MARK HIGH GROWTH , LOW
MARKET SHARE

 Most businesses start of as question marks.

 They will absorb great amounts of cash if the
market share remains unchanged, (low)
 Investments should be high for question marks.
 Example
SMALL GARAGE
MECHANIC SHOP
CASH COW LOW GROWTH, HIGH MARKET SHARE
 Cash-Cow position as the market growth rate
slows and market leadership is achieved. As the
impact of the product life cycle takes effect and
the market growth rate slows the product will
move from the star position of high growth to the
Cash Cow position of low growth / high share.
 Example
DOG LOW GROWTH, LOW MARKET SHARE

 Dog' position as investment is minimised as the

product ages and loses market share.
 Example
SMALL TOWN THEATRES
The links between the BCG and
the Product Life Cycle