Post on 01-Jan-2016
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Portfolio PlanningPortfolio Planning Used to help managers decide on Used to help managers decide on
investing scarce organizational investing scarce organizational
resources among competing business resources among competing business
opportunities.opportunities.
Useful for multibusiness or multiproduct Useful for multibusiness or multiproduct
situationssituations..
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Boston Consulting GroupBoston Consulting Group
Who is Who is the the Boston Consulting GroupBoston Consulting Group
??
Most well-known for “The Pricing Most well-known for “The Pricing
Paradox” and the BCG MatrixParadox” and the BCG Matrix
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BCG MatrixBCG Matrix
Allows Allows for Strategy Formulation by for Strategy Formulation by
analyzing business opportunities analyzing business opportunities
according to according to ……
1.1. Industry or market growth rateIndustry or market growth rate
Low versus highLow versus high
2.2. Market shareMarket share
Low versus highLow versus high
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High
MarketGrowth
High
Low
Market ShareLow
BCG Matrix
Question Mark•Poor position in a great market.•Grow or get out
Star•Market leader in a growing market.•Invest in further growth.
Dog•Poor position in a dieing market.•“Kick the dog to the curb”
Cow•Great position in a market with little growth.•“Milk it”