Here is the portfolio of Procter and Gamble’s Products to find out their growth potential. But with the help of BCG Matrix you can forecast it easily.
It is usually forecasted based on the past trends and history. It is difficult to quantify the growth potential of the company. Therefore you have a 50% share in the market. The total number of soda glasses sold are 200 (100+25+75) and out of these 200, you sold 100. You have 2 competitors who sold 25 and 75 glasses of soda as well. Suppose you ran a soda shop in your area and you sold 100 glasses of soda in the summer. It is calculated by the number of units of product sold by the company or the overall revenue.Įvery company keeps a check on the market share very closely. Market share means the overall percentage of the shares of the company in the market. What is the growth potential of the company? What is the present market share of the company? In short, this matrix focuses on 2 main questions: Each box in the matrices has its own unique features. The Y axis represents the market growth and the X axis represents the market share. It is a simple 2*2 matrices with 4 quadrants. In this blog we will learn more about the Boston Consulting Growth-share Matrix.Īlso Read | Marketing Qualified Leads (MQLs)Ī BCG Matrix is a tool, which is used to graphically represent a company's products and services in such a way that the company can decide which one is worth the investment and which one should be cut off. In such situations a BCG Matrix can provide utmost help. They need to analyze each business segment and make decisions.
For such companies planning and strategizing their next move can be a little complex.Ĭompanies have to make decisions about their investments like- whether they should continue with the product or cut off. When we consider a big company, we can see the range of different products, multiple strategies and a huge market share. The main objective was to develop a tool that would assist the companies to find out which investments in products and services are worth investment and time. The Boston Consulting Growth-share Matrix in short, called the BCG Matrix was first created in the year 1970 by Bruce Henderson and the Boston Consulting Group. The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.” “A company should have a portfolio of products with different growth rates and different market shares.
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