The second assumption is that a growing market requires substantial investment to increase capacity which results in the consumption of its cash. First assumption is that an increase in relative market share of a company will result in an increase in the generation of its cash. ![]() ![]() relative market share and market growth rate. The BCG matrix considers two variables i.e. How does the BCG growth-share matrix work? It should be noted that BCG Matrix is also known as Growth-share matrix, Boston matrix, and Portfolio diagram. BCG Matrix helps companies manage a portfolio of different business units (or major product lines) as they sometimes face challenges to allocate resources among their strategic business units. Henderson for the Boston Consulting Group (BCG) in the early 1970’s. BCG matrix is an important strategic planning tool.
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