The BCG Matrix helps you choose the right strategy for business growth

Joywtome231 · Post by **Joywtome231** » Thu Feb 13, 2025 6:42 am

The BCG matrix is a field divided into 4 sectors. The relative market share and its growth rates are located along the axes.
Using the matrix, you can analyze:

individual goods and services;
product categories;
brands in the company's portfolio;
areas of work or sales channels;
divisions of the company, even if they are not related to each other.
Thus, the BCG matrix is a fairly universal tool that can be used to analyze any business units.

What is the BCG matrix for?
The Boston Consulting Group Matrix helps in long-term planning and management. In particular, it can be used to:

evaluate the business efficiency and the current position of the company, develop a development strategy;
analyze the product portfolio and areas of work - identify the most promising of them;
allocate resources and decide which goods and services are best to invest in;
optimize product groups, close unprofitable products;
make a visual presentation of the company's portfolio.
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Ultimately, using the BCG matrix in strategy development allows you to create a balanced product portfolio, increase market share, and make your business more competitive, sustainable, and profitable.

BCG Matrix Categories
Let's take a closer look at the four quadrants that make up the BCG matrix.

Milking cows
Alternative name: "Moneybags". These are products or business areas that occupy a large market share. But the market growth rate is low or stagnates.

"Cash cows" generate high stable income and do not require significant investments - production pays off, and marketing costs are limited. But revenue is already hitting the market "ceiling", so you should not expect much further growth from them.