What does the BCG matrix focus on?

Question

Quizplus · Accepted Answer

The BCG matrix focuses on both market share and market growth, as it positions a company's products or business units within a matrix that takes into account their relative market share and the growth rate of the market. This helps the company make decisions about where to invest resources, whether to pursue growth or harvest profits, and whether to divest or invest in certain products or business units. Additionally, the matrix considers the industry attractiveness of each market, with high-growth, high-share markets classified as "stars," high-growth, low-share markets classified as "question marks," low-growth, high-share markets classified as "cash cows," and low-growth, low-share markets classified as "dogs." The Boston Consulting Group (BCG) matrix, which focuses on market share and market growth (see Figure 3.4).

What Does the BCG Matrix Focus On