Boston

Consulting
Group matrix
• Presented by :Aytal khan
MBA(integrated)
Introduction
u BCG matrix is a framework created by
Boston Consulting Group to evaluate the
strategic position of the business brand
portfolio and its potential. It classifies
business portfolio into four categories based
on industry attractiveness (growth rate of
that industry) and competitive position
(relative market share).
u Relative market
share can be
calculated in
terms of revenues
or market share. It
is calculated by
dividing your own
brand's market
share (revenues)
by the market
share (or
revenues) of your
largest competitor
in that industry.
Market growth rate
u High market growth
rate means higher
earnings and
sometimes profits but
it also consumes lots of
cash, which is used as
investment to stimulate
further growth.
v Boston Consulting Group (BCG) Matrix is a
four celled matrix (a 2 * 2 matrix) developed
by BCG, USA. It is the most renowned
corporate portfolio analysis tool.
v it is a comparative analysis of business
potential and the evaluation of
environment.