{"id":2753,"date":"2021-01-11T11:38:36","date_gmt":"2021-01-11T11:38:36","guid":{"rendered":"http:\/\/promanconsulting.hu\/?p=2461"},"modified":"2023-05-17T18:51:01","modified_gmt":"2023-05-17T18:51:01","slug":"bcg-matrix","status":"publish","type":"post","link":"https:\/\/promanconsulting.hu\/en\/bcg-matrix\/","title":{"rendered":"BCG matrix"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>The BCG matrix is one of the most widely used and best-known methods of strategic analysis. The method is not new, having been developed in 1968 by the Boston Consulting Group (hence the acronym BCG), but its validity is still unquestioned in today's digitally transformed market environment.  But what is the BCG matrix and how do we use it?\u00a0<\/strong><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-3424\" src=\"http:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/bcg.png\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/bcg.png 800w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/bcg-300x225.png 300w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/bcg-768x576.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2>What is the BCG matrix?<\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The BCG matrix is a strategic analysis method used to analyse a company's products, product lines, services or even entire business units.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The analysis is based on the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The rate of market growth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Relative market share<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For this reason, the BCG matrix is also called the growth-share matrix.\u00a0<\/span><\/p>\n<h2>Objectives of the BCG matrix<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market positioning of the company's products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the strategy to be applied based on the product lifecycle and market positioning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Developing the optimal product portfolio for the company<\/span><\/li>\n<\/ul>\n<h2>Categories of the BCG matrix<\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the analysis, the product, product line, service or industry analysed can take low and high values in terms of relative market share and market growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This results in the following 4 categories:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stars:<\/b><span style=\"font-weight: 400;\"> high market share + high market growth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Question marks:<\/b><span style=\"font-weight: 400;\"> low market share + high market growth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash cows:<\/b><span style=\"font-weight: 400;\"> high market share + low market growth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pets (dogs):<\/b><span style=\"font-weight: 400;\"> low market share + low market growth<\/span><\/li>\n<\/ol>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-3423\" src=\"http:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG-matrix.png\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG-matrix.png 800w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG-matrix-300x225.png 300w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG-matrix-768x576.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<h3 style=\"text-align: justify;\"><strong>Stars<\/strong><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The stars are the products, product lines, services or industries that are clearly in the best strategic position due to their high relative market share and the ever-expanding market. These may include first-to-market products in a given category and monopolies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Their cash-generating capacity is very high, but they are not necessarily profitable at the moment because of the high costs of serving the needs of an ever-expanding market and defending against competitors' attacks. The stars are in a phase of strong growth and turbulent competition on the product life curve.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The stars set the main direction of the company's product portfolio. The aim is to maintain their success and become a bellwether, thereby generating as much profit as possible. The right strategy is therefore to maintain or grow.\u00a0<\/span><\/p>\n<h3 style=\"text-align: justify;\">Cash cows<\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Cash cows are those products, product lines, services or industries where high market share is associated with low market growth prospects. These products are at the maturity stage of the product life curve.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Such products bring the high profits, cover the R&amp;D and marketing costs, and further develop the question marks to become market leaders.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The strategic objective in this case is to keep the cash cows in this position for as long as possible. So the strategy to be used is to maintain the level and maximise profits.<\/span><\/p>\n<h3 style=\"text-align: justify;\">Question marks<\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Question Marks are products, product lines, services and industries that have a small market share but are in a dynamic growth market.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">That's why question marks have great growth potential and can become stars. However, they require a large investment and are not yet profitable. Question marks are products that are at the launch stage of the product life curve.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In their case, the right strategy is to continue to grow and invest, but if market conditions are unfavourable, then the choice is to retreat.\u00a0<\/span><\/p>\n<h3 style=\"text-align: justify;\">Dogs<\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Dogs are products, product lines, services or industries where there is neither a large market share nor a growing market.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They get their name from the fact that they were once cash cows and are therefore nostalgically cherished as a favourite pet, but are actually more of a loss. These units or products are at the end of the decline stage of the product life curve.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In their case, the correct strategy is usually to withdraw. However, there may also be a situation where dogs prevent competitors from monopolizing or new entrants from entering. In such cases, the strategy of maintaining the level should be used.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Comparison of the BCG matrix categories<br \/>\n<\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-large wp-image-3422\" src=\"http:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG_tabla-1024x585.png\" alt=\"\" width=\"1024\" height=\"585\" srcset=\"https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG_tabla-1024x585.png 1024w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG_tabla-300x171.png 300w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG_tabla-768x439.png 768w, https:\/\/promanconsulting.hu\/wp-content\/uploads\/2021\/01\/BCG_tabla.png 1108w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2>Advantages and disadvantages of the BCG matrix<\/h2>\n<h3>Advantages of the BCG matrix:<\/h3>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy to prepare<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An excellent tool for developing a product development strategy<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gives an easy-to-interpret result<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Disadvantages of the BCG matrix<\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not suitable for a full analysis, as it only takes into account two factors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not suitable for long-term analysis in a rapidly changing environment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does not take into account the expected or real reactions of competitors<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The BCG matrix is therefore a very illustrative and effective tool for strategising. However, it is important to review the results at regular intervals and to use them in combination with other analytical methods (e.g. PESTEL analysis).\u00a0<\/span><\/p>\n<h2>Have a question? Contact us!<\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If you have any questions about more effective strategic planning or other areas of project management, please contact us. <a href=\"mailto:info@promanconsulting.hu\">contact<\/a>. Contact us for a free consultation!<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>A BCG m\u00e1trix az egyik legelterjedtebb \u00e9s legismertebb strat\u00e9giai elemz\u00e9si m\u00f3dszer. A m\u00f3dszer nem \u00faj, hiszen 1968-ban dolgozta ki a Boston Consulting Group (innen a BCG r\u00f6vid\u00edt\u00e9s). L\u00e9tjogosults\u00e1ga azonban m\u00e9g ma, a digitaliz\u00e1ci\u00f3 miatt \u00e1talakult piaci k\u00f6rnyezetben is megk\u00e9rd\u0151jelezhetetlen.\u00a0 De mi is a BCG-m\u00e1trix \u00e9s hogyan alkalmazzuk?\u00a0 Mi a BCG m\u00e1trix? A BCG m\u00e1trix egy [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[179],"tags":[202,203],"class_list":["post-2753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-szervezetfejlesztes","tag-bcg-matrix","tag-strategiai-tervezes","entry","has-media"],"_links":{"self":[{"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/posts\/2753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/comments?post=2753"}],"version-history":[{"count":1,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/posts\/2753\/revisions"}],"predecessor-version":[{"id":6243,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/posts\/2753\/revisions\/6243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/media\/3424"}],"wp:attachment":[{"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/media?parent=2753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/categories?post=2753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/promanconsulting.hu\/en\/wp-json\/wp\/v2\/tags?post=2753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}