The BCG matrix is used to position the products, activities or commercial offers of a company according to two criteria: It needs driving products that bring profitability and others, in the making, whose objective is to reinforce or replace driving products.
To ensure its sustainability, a company must have a balanced portfolio of products or activities. WHAT IS THE BENEFIT OF THE BCG MATRIX? What is the objective of the process? It is then used to map the target market and position competing offers. The BCG matrix can also be used to define the strategy to adopt when setting up a business. Managers will thus be able to choose to prioritize investments on certain offers whose potential has been deemed more interesting for the company’s strategy. The approach consists of mapping the portfolio of commercial offers (products and/or services) according to these two criteria in order to prioritize the strategic actions to be carried out according to the potential of their individual developments. Growth Share Matrix is used to identify growth opportunities and help entrepreneurs make investment decisions based on their positions. The BCG matrix or Growth Share Matrix bears the name of its inventor: the Boston Consulting Group, it is used in marketing and in strategic analysis to compare the commercial offers, activities or business unit of a company according to the attractiveness of the market and their advantages and competitive.
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