The BCG matrix assesses the company’s product portfolio by placing each product, division or SBU (strategic business unit) on a 2×2 grid. The product life cycle is reflected by market growth, and the experience curve is mirrored by the relative market share. …

What is BCG matrix in simple words?

The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.

How does BCG matrix help in strategic planning?

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It’s also known as the Growth/Share Matrix.