BCG Matrix Analysis for Market Products
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ScribdTranslationsBCG Matrix Analysis for Market Products
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ScribdTranslationsBCG Model
The Boston Consulting Group model, known also asB.C.G. matrixsau
growth-market share matrix, was developed by an American management consulting firm.
having the same name. With the help of this matrix, the existing activities (products) are grouped in
the portfolio of an enterprise in four categories, based on two criteria:
• market growth rate, activity (product). As the differentiation threshold, it was considered
the value of 10% that distinguishes a rapidly growing market and a slowly growing trend,
stagnation or decline.
• relative market shareheld by a company within the respective market. As a threshold of
the value 1.00 was considered different, which differentiates leading products from non-leading ones
enterprise.
Thus, depending on the quadrant in which the activities (products) of the enterprise are placed,
these will have suggestive names, allowing an analysis of them.
B.C.G. Matrix
0.1 products with a low rate
1-2 high quota products
0-10% products with growth rate mica
10%-20% products with a high growth rate
The products in the quadrantDilemmathere are products that operate in a market that is
rapid growth. These products require liquidity, they contribute to the development of the company
thus, their evolution is uncertain. "dilemmas" will be products in the launch phase,
and it is still unclear whether they will be a success or not.
“The starsrepresent products that operate in a rapidly growing market, they
holding the position of leader. As a result, it contributes to the increase in turnover of
enterprise, as well as the improvement of its image. Generally, a product that is in
growth phase place in this quadrant.
“The milking machinesrepresents products that hold a leading position in a market that is in a
slow growth, stagnation or even decline. These products are certain values of the enterprise, in
the sense that they bring profits and provide liquidity for financing the other products located in
Old quadrants. A product in the maturity phase can be situated in this quadrant.
“The millstonesthere are products in a market that is slowly growing, stagnant, or declining
those who are unable to maintain a leadership position. They do not contribute to profit generation.
the company nor in improving its image. Since it requires liquidity, it is put
the problem of their maintenance after abandonment, but only after a thorough analysis of everything
economic aspects- financing. Usually, a a product in decline is located in
this dial.
Next, we will analyze some of the services of GFK Romania - Market Research Institute, in
function of growth rates and market share rates, presented in the following table:
Product Growth rate Relative market share
Ad-hoc studies 6 1,2
Qualitative studies 18 1,3
Product testing studies 13 0.6
Packaging testing studies 19 0.9
Forecast studies 6 1,3
Concept testing studies 5 0.3
For these products, the BCG matrix will be:
20%
Qualitative studies
Product testing studies
Packaging testing studies
10%
Ad-hoc studies Concept testing studies
Forecast studies
0
% 2 1 0
relative quota of
market
From the BCG matrix, we can draw the following conclusions:
- The services 'Product Testing Studies' and 'Packaging Testing Studies' have a delicate position in
the market due to high production costs and high selling prices; for this reason
these services are not market leaders.
- The services 'Ad-hoc Studies' and 'Forecast Studies' are leaders in the market, recording volume.
to achieve and bring revenue to the company, these are the profitable services.
The service Qualitative studies this product is in a growth phase and is in a position of
leader in the sofa bed section.
- ServiceConcept testing studiesis in a slow-growing market and does not hold a position
of leader