Since its introduction in the 70s, Boston Consulting Group Matrix (BCG Matrix) or the growth-share matrix has been used to make product and market related decisions.

 

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This strategy-cum-analysis tool has helped managements evaluate the prospects of their product (and service) portfolios better. A BCG Matrix framework reduces key variables of resources, investment, business variable’s growth and market share into easy-to-comprehend boxes for ease of decision. Structurally, a BCG matrix identifies four regions explained below with examples:

 

  1. One region identifies those products (and services) that have the maximum market share and the highest potential to grow. This is the Star region, which businesses want to populate to the maximum.
  2. The second region, corresponds to the high market share yet low growth potential, referred to as the Cash cow. Considered as the mature phase, here the business returns are the most and the revenue generated, in this phase, powers other business pursuits as well.
  3. The third region is indicated with a Question mark symbol that points out to the high potential, yet low market share region. The products and services under this category can be reformed and marketed to fall under any of the remaining three categories. 
  4. The last category is marked with a Dog or a pet symbol. It indicates the low market share and low growth potential products of a business that generally see the fate of liquidation. These are like the vestigial organs of a body. As long as they are not feeding on the business investments without avail, they can stay. At the end of teh day, it is always better to shed these off. 

 

With the utility defined, the next pursuit for businesses is to look for BCG matrix templates that'll help businesses analyze the best way to enter markets, assess product competition, increase sales, and thereby plan a definitive business growth strategy. 

 

SlideTeam caters to this requirement.

 

Invest in our content-ready and 100% editable BCG matrix templates and get the best understanding of your business’s growth. Differentiate business dead-ends from profitable low-hanging fruit-yielding ones and re-alighn your business’s trajectory to success with our expert-designed BCG matrix Templates. Check now!

 

Template 1: BCG Matrix PowerPoint Template Bundles

 

Deploy this customized BCG matrix template to analyze your business. The three BCG matrix templates as colllated in this PPT Presentation will help you make better investment decisions, plan your business growth, and aid in effective portfolio planning respectively. Use this template to address these three objectives separately and point out insights with these easy-to-edit PPT Templates. Get these BCG Matrix templates now.

 

BCG Matrix PowerPoint Presentation

 

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Template 2: BCG Matrix Model for Market Entry Analysis

 

Conduct a BCG matrix analysis for your business to make market entry decisions with this PPT Template. Understand where your product portfolio falls under among the four categories and discuss the best ways to achieve your target objectives. Highlight which products (or services) fall under cash cow, star, interrogation, and pet domain and plan the next step to transition. Deploy this practical PPT Design now!

 

BCG Matrix Model for Market Entry Analysis

 

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Template 3: BCG Strategy for Textile Industry Products To Increase ROI

 

Strategize to maximize the ROI for your textile business’s products with our dedicated BCG Template. Bifurcate your products under the four categories of this matrix diagram and find out the best routes to land in the most stable and profitable region, referred to as the cash cow. Use this presentation template to discuss how you can maneuver the pet region and strive to achieve maximum market share and to compete in the growth positive region. Employ this PPT Layout now!

 

BCG Strategy for Businesses Aiming to Increase ROI from Textile

 

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Template 4: BCG Matrix for Product Competition Analysis

 

Among other uses of a BCG matrix are competition analysis. Understand where your competitors lie with this credible business analysis tool. Point out the ones posing the maximum threat to your business and distinguish these. Furthermore, plot your business in this BCG graph and know in advance the strength of the business fight ahead of you. Click on the link below to grab this PPT Layout now!

 

BCG Matrix for Product Competition Analysis

 

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Template 5: Electronics Industry BCG Growth Matrix

 

Do you belong to the electronics industry? If yes, here’s a fully editable business growth strategy matrix template to assess your business stance. Use this presentation template to categorize your multi-product business to identify the dead-ends(pets) and the high-yielding (cash cows). Keep a close eye on the question mark and the star regions, as these are a pointer to your business health. Deduce valuable insights by downloading this BCG matrix template now.

 

Electronics industry BCG growth matrix

 

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Template 6: Four-Box BCG Market Growth Share Grid

 

Analyze your market growth share with this dedicated BCG matrix template. Help your team understand where your products lie among the four categories identified in the BCG matrix. Once identified with this PPT Template, you can then proceed to devise strategies on increasing this share and benefiting your business in the process. Go ahead and download it now!

 

4 Box BCG Market Growth Share Grid
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Template 7: BCG Matrix To Evaluate Market Pricing Strategy

 

How is your business’s market pricing strategy and how can you plan better to obtain maximum market share? Dwell on these questions with this BCG matrix template. Focus on what all needs to be done about earrings, cash flows, and strategies as you categorize your product portfolios under BCGs four regions. Strategize your products better with this BCG Matrix template now!

 

BCG matrix to evaluate market pricing strategy

 

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Template 8: BCG Matrix for Corporate Strategy Formulation

 

Contemplate your next successful corporate strategy with our BCG Matrix template. Categorize your product portfolios into the five prominent quadrants of this BCG matrix and discuss how these can achieve the star and the cash cow characteristics. Strategize to steer clear of the pet region otherwise, try to divest them. Deduce other business-centric insights by using this important business growth PPT Template. 

 

BCG Matrix for Corporate Strategy Formulation

 

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Template 9: BCG Matrix for Assessing Multi Brand Strategy

 

Perform an in-depth analysis of your multi-brand business model and reveal the insights with this dedicated PPT Template. Gather the best strategies to transition from question mark region to star and cash cow and to avoid the dog region. Use this template to inform your team about the best ways to do so and put this data together. Download this multi-purpose PPT Template now!

 

BCG matrix for assessing multi brand strategy

 

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Template 10: BCG Matrix for Better Investment Decisions

 

A BCG matrix is great at helping brands make better investment decisions. Use this PPT Template to categorize your product portfolios under the standard four categories and then decide on the best ways to transition toward better market share and growth potential categories. In particular, point out the cash positive and negative regions to focus on the former, revenue generating aspects. Grab it now!

 

BCG Matrix for Better Investment Decisions

 

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10 VARIANTS AVAILABLE

 

Choose from this practical collection of BCG Matrix templates available in ten varying designs now to anticipate better business days ahead.

 

PS: If you are looking to manage your projects better and to identify the non-performing ones from the ones that need swift action, give this blog on project portfolio a read. Re-align your important projects and identify the ones draining your capital. 

FAQs on BCG Matrix

What is the BCG Matrix? 

The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic management tool used to analyze a company's portfolio of products or business units. It was developed by the Boston Consulting Group, a management consulting firm, in the early 1970s. The matrix provides a visual representation of the company's product offerings based on two main dimensions: market growth rate and relative market share.

 

The BCG Matrix classifies products or business units into four categories:

 

  1. Stars: These are products or business units with high market share and operate in high-growth markets. Stars typically require significant investments to maintain their growth and market leadership. They have the potential to become cash cows in the future as the market growth rate slows down.
  2. Cash Cows: Cash cows have high market share but operate in low-growth markets. These products or business units generate more cash than they require for further development since the market growth is limited. Cash cows are considered to be a stable and profitable part of the portfolio, and the goal is to milk them for continuous revenue.
  3. Question Marks (also known as Problem Children or Wild Cards): Question marks have low market share but operate in high-growth markets. These products or business units require significant investments to increase their market share and turn them into stars. However, some of them may fail to achieve significant growth and become dogs.
  4. Dogs: Dogs have low market share and operate in low-growth markets. They neither require significant investment nor generate much cash. These products or business units might be candidates for divestment if they do not show any potential for improvement.
What is the BCG matrix used for?
  1. Portfolio Analysis: It helps companies categorize their products or business units based on market growth rate and relative market share, providing a clear overview of the portfolio's balance.
  2. Resource Allocation: The matrix guides decision-making on resource allocation by identifying high-growth potential products (stars and question marks) that require more investment and low-growth products (cash cows) that may not need as much investment.
  3. Strategic Planning: Businesses can develop strategic plans for products or units based on their positions in the matrix, such as nurturing stars to become cash cows or deciding how to manage cash cows for consistent profits.
  4. Performance Assessment: Regularly evaluating product positions in the matrix allows companies to track performance over time and adapt strategies accordingly.
  5. Product Portfolio Management: The BCG Matrix helps manage diverse product portfolios, avoiding over-investment in unprofitable products and focusing on high-potential offerings.
  6. New Product Planning: When considering new product development or market entry, the matrix provides insights into how the new offering fits within the existing portfolio.

 

Overall, the BCG Matrix aids in understanding market opportunities, prioritizing investments, and formulating effective growth strategies to enhance a company's competitiveness. However, it is best used in combination with other strategic tools and real-world analysis. 

Who gave the BCG Matrix?

The BCG Matrix, also known as the Boston Consulting Group Matrix, was developed by Bruce D. Henderson, the founder of the Boston Consulting Group (BCG), in the early 1970s. Bruce D. Henderson was an American business consultant and entrepreneur, and he created the matrix as a strategic management tool to help companies analyze their product portfolios and make informed decisions about resource allocation and growth strategies.

What are the advantages of BCG matrix?
  • Simplicity and Ease of Use: The simplicity of the BCG Matrix allows for quick visualization and communication of complex information.
  • Portfolio Visualization: The matrix provides a visual representation of a company's product portfolio, allowing managers to see the relative positions of each product or business unit in terms of market growth and market share.
  • Resource Allocation: It helps in making informed decisions about resource allocation by identifying which products or units have the potential for high growth and profitability..
  • Strategic Direction: The BCG Matrix assists in developing strategic plans for different products or business units, enabling a company to prioritize efforts. 
  • Competitive Insights: The matrix encourages companies to evaluate products' competitive positions in the market, fostering a deeper understanding of the competitive dynamics and market trends.
  • Risk Management: By categorizing products or units based on growth potential, the matrix helps identify areas of the business that may be riskier or require more attention due to low market share or uncertain market conditions.
  • Long-term Profitability: The BCG Matrix prompts businesses to invest in products with high potential for long-term profitability (stars), potentially leading to sustainable competitive advantages.
  • Portfolio Diversification: It encourages diversification within a company's product portfolio, helping to spread risk and reduce reliance on a single product or business unit.
  • Communication and Alignment: The matrix facilitates communication and alignment within an organization regarding strategic goals and resource allocation, ensuring that all stakeholders understand the company's product mix and growth strategy.
  • Historical Comparison: Over time, companies can use the matrix to compare the changing positions of products, enabling them to assess the effectiveness of past strategic decisions.