BCG Matrix
Written by :
Afringga Qurani A.S. (008201100114)
Dery Apriani S. (008201100033)
Firdausi Fananiar (008201100086)
Mutmainnah Hauliyah (008201100120)
Putri Azizah S. (008201100023)
Rizqi Mulia Raya (008201100106)
Lecturer : Mr. Irfan Habsjah
Class : Accounting 2
President University
Jababeka Education Park, Jalan Ki Hajar Dewantara, Cikarang – Bekasi 17550
BCG Matrix
Definition of BCG Matrix
Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA in 1970, to help corporations with analyzing their business units or product lines. This help the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. BCG Matrix focused as it only looks exclusively at a market view, but the beauty of this model is that it gives an organization permission to stop continuing efforts that do not help promote the organization. It also provides a useful way of screening the opportunities open to you, and helps you think about where you can best allocate your resources to maximize profit in the future.
Understanding The Model
Market Share and Market Growth
To understand the Boston Matrix, you need to understand how market share and market growth interrelate.
Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. The higher your market share, the higher the proportion of the market you control.
The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage).
The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you