Question

Compare and contrast SWOT and BCG matrixes?

Answer 1

Comparison:

BCG matrix helps to design a strategic planning to make the long-term business with the growth of many new opportunities by the proper checking of the portfolios to invest into the right products so to concentrate on developing products or to discontinue from it.   

SWOT analysis is divided into four major parts; strength, weakness, opportunities, and threats. All the four parts are analyzed correctly to determine the right production path in business growth. From manufacturing any product to launching in the market, the above four factors are well checked to avoid any threats and weakness. The SWOT analysis helps the organization to lead and develop the business successfully.

Contrast:

BCG matrix:

BCG matrix has been penned in terms of market share and market growth and further, the business activities are divided into four categories. The categories are Stars, Cash cows, Question marks, and Pets. The question mark represents the heavy increase of the market while stars represent the proper investment growth by ensuring the exceeding of high cash flow. The cash cows represent the company foundation by high profits with the low investment, whereas pets (Dogs) represents to ensure cash flow and that completes the product lifecycle.

SWOT analysis

It is formulated with four important factors, the first two factors are internal and the second two factors are external. The internal factors are strengths and weaknesses, the external factors are opportunities and threats.

1. Strengths depict the concept of developing new innovative product and services with high marketing expertise

2. Weaknesses depict the concept of improper marketing expertise and that hampers the reputation of the business

3. Opportunities depict the joint ventures, developing the alliance, and by fixing the innovative strategies to target the new market segments for more improved profit.

4. Threats arrive when a new competitor enters the market with the new approach to target the potential audiences. The price wars get started and new approach of promotions through channel marketing established which divert others to accept and in this way somehow the existing business holder drops in fulfilling their targets and their profit making graphs becomes down.