The products that fall into this category are those that hold the best market share and generate the most revenue for the company. Here is what each quadrant means in the BCG Matrix. This article discusses its implications for a marketer.
The role of BCG matrix in strategy management has been immense and corporations have relied on this framework for the last 50+ years. Now, if you observe the BCG matrix diagram, it is divided into four different quadrants which will allow you to find the role a product plays in your profit margin. If I had to rather explain BCG growth matrix to you in simple terms I would say again that, if you are working on a big product portfolio (maybe at an FMCG company) then the BCG matrix growth share can give you a very quick overview.īCG matrix is in use ever since the 1968 and has been helping the organizations to gain insights about which of their products will help them to capitalize on the current market share growth opportunities. It provides the businesses with a framework to analyze products according to growth and market share. Let me quickly take you through the BCG matrix after which I will talk about what can you really do with.īCG matrix stands for Boston Consultant Growth Matrix and is also known as Growth share matrix.
“Between calculated risk and reckless decision-making lies the dividing line between profit and loss- Charles Duhigg “ Which product is doing well, which one is just doing fine and which one is in a really bad shape.Įvery business needs to have products that churn the wheels of profit, and the BCG matrix will help you spot those products. While the Ansoff Matrix helps you as a marketer understand his or her product strategy, the BCG Matrix will give you an overview of your product portfolio. This article on the BCG Matrix flows quite naturally from previous on Ansoff. In this article, I also explain how BCG Matrix can find a good use in Digital Marketing, something which I realized while analyzing a few of my Facebook Ad Campaigns.Īlso, I share the example of one of IIM Udaipur’s alumni, Angad Abrol, and how one of his start-up ventures serves as a perfect example to explain the BCG Matrix. The BCG Matrix is the next in line and the point of discussion of this article. I covered the Ansoff Matrix before this in a separate article. I had started off with a series in which I plan to cover the most important frameworks that a marketing strategist should know.
0 kommentar(er)
