BCG matrix also allows businesses to determine new opportunities for growth and make decisions about their future investments. This long-term strategic planning tool helps companies examine each product's performance. What is a BCG matrix?īCG matrix or Boston Consulting Group growth-share matrix is a model for evaluating business units and product lines in the company’s portfolio according to their relative market share and growth.

We will also explain how to apply this model in practice to analyze the potential opportunities for your organization, find underperforming assets and identify products or business units that require additional investment. In this article, we will describe the concept of the BCG matrix in detail and consider examples of matrices for established companies. With this model, you can create a diversified and well-balanced business portfolio, develop a future-oriented growth strategy and identify the assets worth investing in. BCG matrix is a perfect tool for analyzing products and business units according to their relative market share and growth. An effective business plan takes into account not only the products’ profitability but also the goals for the future. Every business requires a strategy to set and implement goals and analyze outcomes.