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    What Is BGC Matrix?: Advantages of BCG Matrix Are

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    MarieJoia
    The BCG matrix, created by Boston Consulting Group, is a tool for analyzing products based on their market share and growth rate. It helps companies identify which products will help gain market share and provide a competitive advantage. The matrix categorizes products as stars, cash cows, question marks, or dogs based on these factors. It is useful for determining resource allocation but has limitations like only considering two dimensions and not accounting for synergies between business units.

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    What Is BGC Matrix?: Advantages of BCG Matrix Are

    Uploaded by

    MarieJoia
    103 views1 page
    The BCG matrix, created by Boston Consulting Group, is a tool for analyzing products based on their market share and growth rate. It helps companies identify which products will help gain market share and provide a competitive advantage. The matrix categorizes products as stars, cash cows, question marks, or dogs based on these factors. It is useful for determining resource allocation but has limitations like only considering two dimensions and not accounting for synergies between business units.

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    What is BGC Matrix

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    The BCG matrix, created by Boston Consulting Group, is a tool for analyzing products based on their market share and growth rate. It helps companies identify which products will help gain market share and provide a competitive advantage. The matrix categorizes products as stars, cash cows, question marks, or dogs based on these factors. It is useful for determining resource allocation but has limitations like only considering two dimensions and not accounting for synergies between business units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    103 views1 page

    What Is BGC Matrix?: Advantages of BCG Matrix Are

    Uploaded by

    MarieJoia
    The BCG matrix, created by Boston Consulting Group, is a tool for analyzing products based on their market share and growth rate. It helps companies identify which products will help gain market share and provide a competitive advantage. The matrix categorizes products as stars, cash cows, question marks, or dogs based on these factors. It is useful for determining resource allocation but has limitations like only considering two dimensions and not accounting for synergies between business units.

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    © All Rights Reserved
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    What is BGC Matrix?

    Business models are based on providing products or services that are profitable now,
    but they also attempt to identify changes in offerings that will keep the company profitable in
    the future. The current moneymakers are easy to identify now, but a good business strategy
    also asks, "What about the future?"
    Created by the Boston Consulting Group, the BCG matrix – also known as the Boston or
    growth share matrix – provides a strategy for analyzing products according to growth and
    relative market share. The BCG model has been used since 1968 to help companies gain insights
    on what products best help them capitalize on market share growth opportunities and give
    them a competitive advantage.
    Advantage and Disadvantages of BCG Matrix

    Advantages of BCG Matrix are:


    1. BCG Matrix is simple and very easy to understand.
    2. BCG matrix can be used to determine and to identify how corporate cash resources can
    best be used in order to maximize company's profitability and future growth.
    3. BCG matrix is used to evaluate balance in the firm's current portfolio of Dogs, Question
    Mark, Cash Cows and stars.
    4. It also provides base management to prepare and decide for future actions.
    5. BCG matrix helps the managers to become more aware on how the services, products or
    business unit perform.
    6. It also helps to prioritize the limited resources in order to achieve the maximum or best
    returns.

    Disadvantages of BCG Matrix are:


    1. BCG matrix is costly to conduct.
    2. BCG matrix needs highly experienced person or a consultant to determine industry's
    attractiveness and business unit strength.
    3. BCG matrix does not take into account the synergies which might exist between two or
    more business units.
    4. High market share is not the only success factor.
    5. The model of BCG matrix do not take into consideration small competitors that have fast
    growing market share.
    6. BCG matrix uses only two dimensions: Market share and Growth rate.

    Sources:
    https://www.businessnewsdaily.com/5693-bcg-matrix.html
    http://frndzzz.com/advantages-and-disadvantages-of-bcg-matrix

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