The BCG matrix (named after the Boston Consulting Group that created it) is a portfolio management tool used by a company to help justify investments in products based on their market position. , their growth and the share that each of them represents in terms of turnover... !
The BCG matrix makes it possible to optimize the distribution of resources among the various SBA (Strategic Business Area) of a company.
So, How can the relative market share of the company be measured for a particular SBA?
Hi.,
Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand's market share (revenues) by the market share (or revenues) of your largest competitor in that industry.
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. It's also known as the Growth/Share Matrix.
The BCG matrix assesses the company's product portfolio by placing each product, division or SBU (strategic business unit) on a 2×2 grid. How does the BCG matrix work in detail? ... The product life cycle is reflected by market growth, and the experience curve is mirrored by the relative market share.
For More info:
https://www.yewbiz.com/marketing/bcg-matrix/
C K Gomathy Thx for your reply, but it's not easy to make a BCG Matrix ! that is why I am researching for, especially in digital marketing !
Let's assume that the company has four products A, B, C, and D. Identify the products as stars, cash cows, question marks, and dogs based on the future growth of the product, investment into the product, and the cash flows from the project. For example, cash cows produce a large amount of cash flows, require a minimum investment, and have declining growth. Once you have identified the product or product in the four-quadrant, determine the revenues from the company's financial statements (segmented product revenues are available if you are an employee of the company). The researchers have to collect this information from the company. The industry and industry subgroup sale information can be gathered from databases ( marketing S&M, and financial S&P Industry survey) available in the educational institution's library. The market share can be calculated by taking the product (for example product B, cash cows) sales divided by the industry or the specific subgroup sales the product belongs to. Thanks.
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