Asked by: Concepcion Timonkinbusiness and finance marketing and advertising
How is the Boston matrix useful?
Last Updated: 2nd June, 2020
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Also to know is, why is the Boston matrix useful?
The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.
Also, what is the Boston matrix in business? The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy. However, owning a product portfolio poses a problem for a business.
In this way, how does the Boston matrix work?
BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share).
What variables does the Boston matrix analysis?
The BCG Matrix (also known as the Boston Consulting Group analysis, the Growth-Share matrix, the Boston Box or Product Portfolio matrix) is a tool used in corporate strategy to analyse business units or product lines based on two variables: relative market share and the market growth rate.