The BCG growth-share matrix is a tool used internally by management to assess the current state of value of a firm's units or product lines. Each investment or product is plotted in one of four positions on the matrix. BCG stand for Boston consulting group and this model was developed by Boston consulting group in early 1970’s to facilitate the organizations for managing their product and business portfolio. Learn more about the growth share matrix and how it works at BCG.com. BCG Growth Share Matrix A chart with four quadrants that helps businesses analyze themselves by placing themselves (or their subsidiaries or products) into one of the four quadrants. Definition of BCG Growth-Share Matrix BCG matrix is a tool used by companies to evaluate their product portfolio and business units for the purpose of developing effective business strategy. The growth share matrix has been blamed for persuading companies to focus obsessively on market share. The growth share matrix is also called product portfolio, BCG-matrix, Boston matrix, Boston Consulting Group analysis and portfolio diagram. It refers to framework first developed by the Boston Consulting Group (BCG) in the 1960s to help companies consider the priority (and resources) that they should give to their different businesses.
A growth-share matrix, also known as a Boston or BCG growth matrix, creates a visual assessment of products or investments in terms of relative market share and market growth rate. The growth share matrix, created in 1968 by BCG's founder Bruce Henderson, is a framework that helps companies decide how to prioritize their different businesses.
In a world where markets are increasingly fluid, this can blind them to the bigger picture. The chart plots market share (on the x-axis) against growth rate (on the y-axis). At the time, Henderson was looking for a "disciplined and systematic" way to help large companies and conglomerates manage their product portfolios, business units and R&D budgets.
The growth share matrix was created by Bruce Henderson, the founder of BCG, in 1970.