Can you explain BCG matrix with very simple example

Arjun singh

1. 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). 2.Definition. BCG matrix. (or growth-share matrix) is a corporate planning tool, which is used to portray firm's brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis. 3. 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 4. A perfect example to demonstrate BCG matrix could be the BCG matrix of Pepsico. ... Cash Cows – With a market share of 58.8% in the US, Frito Lay is the biggest cash cow for Pepsico. Stars – Even though Pepsi's share in the market has been reduced to 8.4%, it's still the star for Pepsico because of its brand equity 5. The BCG matrix can be useful to companies if applied using the following general steps. Step 1 – Choose the Unit. ... Step 2 – Define the Market. ... Step 3 – Calculate Relative Market Share. ... Step 4 – Calculate Market Growth Rate. ... Step 5 – Draw Circles on the Matrix.

Sandip kumar

hii

Eduncle

Dear Student,

Kindly go through the content once again and ask that what particular difficulty you are facing in the topic for better assistance.