1. B.C.G. GROWTH – SHARE MATRIX
A PRESENTATION ON
B.C.G. GROWTH – SHARE MATRIX
SUBMITTED TO:-
STUDENTS & FACULTY
SUBMITTED BY:-
MUKESH GUPTA

2. INTRODUCTION :-
Bruce Henderson and his colleagues at the Boston Consulting Group developed the growth – share matrix, also known as Boston Box. It was developed to assist manager in determining how they should use funds from successful products to find growth in other businesses.
It is based on the observation that a company’s business units can be classified into four categories based on combination of market growth and market share relative to the largest competitor. The Boston matrix classifies a firm’s products according to their cash usage and their cash generation along the dimensions of market growth rate and relative market share. Market growth rate is used because it is an indicator of the product’s cash requirements and market share is used because it is an indicator of the product’s ability to generate cash.

3. STARS DOGS QUESTION -MARKS CASH COWS HIGH LOW HIGH LOW
Relative Market share
(Cash Generation)
HIGH
LOW
STARS
QUESTION -MARKS
CASH COWS
DOGS
HIGH
Market Growth Rate
(Cash Usage)
LOW

4. STRATEGIES CASH COWS MAINTAIN QUESTION MARKS GROW OR EXIT STARS
IMPROVE
DOGS
HARVEST OR EXIT

5. LIMITATIONS :-
Market growth rate is only one factor in cash usage but B.C.G. Matrix overlooks many other factors like- market size , pricing trends and segmentation & distribution structure .
Market share is only one factor to show business competitive position but there may be many other factors which can affects competitive position of company , as – brand strength , product quality , customer loyalty and technological innovation etc.

6. THANK YOU
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