The BCG matrix is a strategic planning tool that can help you evaluate your product or business portfolio. It helps you identify your product or business portfolio's biggest winners and losers and see how they perform against each other in terms of their growth and market share.
What Is A BCG Matrix?
The BCG Matrix was developed by Bruce D. Henderson for the Boston Consulting Group (BCG) in 1970. It helps the company to analyze where to allocate its resources and is used as an analytical tool in different practice areas as strategy, product management, marketing, or portfolio analysis.
What is the importance of a BCG matrix?
Everyone knows how important it is for companies to have a clear strategy and keep analyzing the market in order to be successful.
The problem is that coming up with a strategy or performing an analysis of the market can take an obscene amount of time in a company, and that’s not something every organization has. That is why there are so many tools out there to help you streamline the creation and implementation of your company’s strategic plan.
One of the most popular tools you can use to simplify this process is the BCG Matrix. It’s one of those things that seems like it should be common knowledge, but almost nobody knows what it is until they need it.
This article will give you an overview of what the BCG Matrix is, how you can use it in your company, and where you can find the pre-made PowerPoint template with all its details included.
BCG Matrix PowerPoint Template Introduction
BCG matrix is a well-known and established strategy tool, which is used to analyze a company’s product portfolio on a quadrant along relative market share axis (horizontal) and market growth rate axis (vertical)
The chart classifies the business units, products or brands into four areas:
- Cash cows
- Poor dogs
- Questions marks
Bosten Consulting Matrix (BCG) Use Cases
- Create transparency regarding the company’s business units, product portfolio or brand portfolio
- Reduce complexity within our strategic analysis and discussions
- Apply the BCG Matrix to evaluate strategic directions based on the current portfolio structure, while balancing the investment needs between exploration in new business segments and exploitation of established segments.
How does the Boston Matrix and Product Life Cycle (PLC) link?
The BCG matrix and the PLC are two different tools that can be used together to help you create better business strategies.
The product life-cycle (PLC) is a framework that describes the different phases your product will go through from initial launch to final discontinuation. Knowing where your product falls in its life cycle can help you make better strategic decisions, such as when to launch new products, which markets to expand into next, and how to allocate limited resources.
The BCG matrix is used to analyze where your product falls on the “growth” and “profit” axes. The PLC is used to understand where your product falls on the “introduction”, “growth”, “maturation” and “retirement” axes. You can use the BCG matrix together with the PLC to help you strategize with regards to pricing and market positioning.
BCG Matrix with portfolio share for each of the four quadrants
This BCG matrix template will help you to evaluate your products and find out the most profitable and successful ones.
It includes the portfolio share of each of the four quadrants, which will help you to know which products are the most successful and the portfolio share of Stars, Cash Cows, Questions Marks, or Poor Dogs from your complete portfolio.
Conclusion: BCG Matrix Template to simplify your creation process
The BCG Matrix is a strategic planning framework used to analyze the market and company’s product portfolio. It was developed by the Boston Consulting Group in the 1970s and has since become one of the most popular tools for strategic analysis in the world.
Essentially, the BCG Matrix divides all products in a given market into four categories. It then uses relative market share and predicted growth rate for each product category to determine where your company’s product portfolio should be positioned in order to maximize profits.
If you want to simplify the creation process and make it easier for you and your team to use the BCG Matrix, you can download our pre-made template for free below.
Download and customize the slides to fit your company’s data and you are all set.
The BCG matrix slide deck consists of 5 different custom layouts. All slides are 100% editable and can be adapted to your requirements.