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Benefits and Limitations of the BCG Matrix

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Explain the benefits and limitations of developing a Boston Consulting Group Matrix.

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This article contains 278 words describing the benefits and limitations of developing a Boston Consulting Group Matrix.

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A benefit of the BCG matrix is that it provides a visual representation of the cash flow and investment requirements of the company's divisions or products. Circles are used to represent the size of the market growth and market share for each division or product. This aids the company in strategic planning by showing which categories require more work. For example, a company with many Dogs may wish to eliminate them and focus on ...

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J Pye, MSc
Education
  • MSc, California State Polytechnic University, Pomona
  • MBA, University of California, Riverside
  • BSc, California State Polytechnic University, Pomona
  • BSc, California State Polytechnic University, Pomona
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