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Its main purpose is to evaluate the strategic position of the business brand portfolio and its potential.The general purpose of the analysis is to help understand, which brands the firm should invest in and which ones should bi divested.
Boston Consulting Group is used as an analytical tool in portfolio analysis, strategic management, product management, and brand marketing. It is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.
Business unit or product line is categorized based on the quadrant of the matrix in which it resides. These categories are Cash Cows, Stars, Question Marks, and Dogs.
The BCG Matrix is used to evaluate and analyze the business units and product offerings of corporations.
Companies can use BCG as an analytical tool in portfolio analysis, strategic management, product management, and brand marketing.
Porfolio analysis and product mix