In: Operations Management
List the four types of businesses that the Boston Consulting Group portfolio analysis matrix considers.
Answer:
Boston Consulting Group portfolio analysis matrix also popularly known as “BCG matrix” is a tool which is used by the companies to analyze the businesses, business units, product lines and products based on the growth and the market share.
As per the BCG matrix, there are four broad types of businesses:
Dogs: These businesses have low market share and operate in low growth market. These businesses are weak in the market and have difficulties in making profits.
Question marks: These businesses have low market share and operate in high growth market. These businesses are unclear on how to tap the opportunities existing in the market and put a question mark if further investment should be made in the market or not.
Cash cows: These businesses have high market share and operate in low growth market. These businesses are performing fairly well in the no growth market with very little investment.
Stars: These businesses have high market share and operate in high growth market. These businesses are best performing businesses which are doing fairly well with great opportunities..