With BCG Matrix, a company will know how all management parts can contribute to its progress.There are several reasons why creating a BCG Matrix is important for your business, like: This evaluation and analysis of services can be done by creating four different category labels: Dogs, Question Marks, Cash Cows, and Stars. They need to do complete market research and see how investing in a particular product or brand can help them. It should be noted here that any company cannot go ahead and invest in any product or brand. When we create a BCG Matrix, we primarily analyze the growth opportunities by reviewing the market share of any services or products and further decide where a company should invest to gain the maximum profit.Īs stated in the definition, the primary purpose of BCG Matrix or Growth-Share Matrix is to make investment decisions on a corporate level. As the name suggests, the Growth-Share Matrix helps businesses with long-term strategic business planning. The Boston Consulting Group (BCG) created BCG Matrix, also known as Growth-Share Matrix, in 1970 to manage strategic experimentation and predict some rapid changes and behaviors in the company. What is the Boston Consulting Group (BCG) Matrix?
