The Boston Consulting Group Matrix and Its Limitations (BCG) The BCG matrix was created in 1970 by Bruce D. Henderson for the Boston Consulting Group, hence the name. Also, known as the growth-share matrix Bruce came up with it to help corporations analyze their business units/product lines. As a tool, the matrix categorizes business units … Read more
What is Strategic Management? Every business strategize. It is an essential management process to strategize and prepare for different odds. Strategy in the simple sense of the word is a plan designed to achieve an objective and planning as we all know is the primary function of management that lays down the base for the … Read more
Marketing Objectives Marketing objectives should be set in terms of which products to sell in which markets. Strategic objectives for each product need to be agreed. This begins the process of planning at the product level. There are four alternatives: Build, Hold, Harvest and Divest. For new products, the strategic objectives will be to build … Read more
Boston Consulting Group Growth Share Matrix (BCG MATRIX) • The BCG matrix based on product life cycle theory was developed by Bruce Henderson of the Boston Consulting Group in the early 1970’s. It has 2 dimensions: Market Growth Rate and Relative Market Share. It is based upon the simple observation that company’s business unit can … Read more
