When do we use BCG analysis?

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.

BCG matrix is an investment or product portfolio analysis tool or framework. According to BCG due scarecity of resoutces investors can not put their mony in all investment opportunities. This would result a trade off between investement opportunities. When choosing from the investment opportunities investors are required to conduct analysis on the market share and market growth. High market share means the product is superior in the market and its return from investment is high. The company have computative advantages in the market. High market growth means the market for the product or investment is attractive and its ROI is high. This is because it easy to get customers from the market. By taking the inputs into consideration investment decision can be made accordingly.1. HIGH MARKET GROWTH AND SHARE. Is the1st investment priority.2. LOW MARKET GROWTH HIGH MARKET SHARE. Is an attractive market that requires additional investment to keep its market share or to harvest from its position advantage.3. HIGH MARKET GROWTH BUT LOW MARKET SHARE. Id a market that needs highest strategic decision. The investor required to make two decisions. The first option is to big investment to further develop the market and to push out actors in the market. The second option is to withdraw from the market before further loss encountered.4. LOW MARKET GROWTH. AND LOW MARKET SHARE. The only option that the investor has is either not to invest or to withdraw from the market. BCG matrix is an investment or product portfolio analysis tool or framework. According to BCG due scarecity of resoutces investors can not put their mony in all investment opportunities. This would result a trade off between investement opportunities. When choosing from the investment opportunities investors are required to conduct analysis on the market share and market growth. High market share means the product is superior in the market and its return fr

Porfolio analysis and product mix