Question

Discuss how the classifications of the Boston Consulting Group matrix relate to industry growth, market share, and business strategy

Answer 1

Answer:

Boston consulting Group matrix also known as BCG matrix is a tool that helps in understanding the current position of the project organisation are investing in or thinking about investing. It studies the portfolio of the organisation based on two factors : market share (x-axis) and market growth (y-axis)

Now BCG contains four categories:

1. Question mark on the top right

2. Star on the top left

3. Cash cows on bottom left

4. Dogs on bottom right

	Industry growth	Market Share	Business strategy
Question mark	There is potential for more growth in this industry.	The market share is still low	There is nothing clear about the project yet, more analysis is required regarding investment decision
Star	Industry is growing more and more	The market share is high	More funds should be invested
Cash cows	Industry has grown up to its potential. No more scope for further growth.	The market share is at its maximum level.	No more investment is required
Dogs	Industry will not grow.	The market share is very low.	Do not invest