Musings on business strategy from a business school professor in Singapore. Content will include a sporadic commentary on business related news, recent examples of old principles and frameworks, book reviews, and more general thoughts related to strategic management broadly conceived.
Showing posts with label BCG. Show all posts
Showing posts with label BCG. Show all posts
Tuesday, 11 March 2014
Is the growth-share matrix (aka BCG matrix) useful?
The growth-share matrix was created by BCG, the consultancy, in the late 1960s based on work with a paper mill. Paper manufacturing is dependent on economies of scale and economies of learning, so market share went on the x-axis. Companies want to grow, so growth went on the y-axis. This model turned out to be immensely successful for BCG and it was implemented by many companies in the 1970s.
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