Although the BCG matrix is the oldest of all the matrices, it is still the best known and the most common portfolio matrix to be taught around the world.
Comparisons can be made using the matrix to assess the relative growth rate of businesses against the industry average and to check the portfolio for financial balance.
The BCG matrix is simple and elegant. As a graphic device; it is fun to use and drives decision-making.
The principles of portfolio planning are correct and applicable at SBU and segment level within business units
Combining portfolio planning with shareholder value at SBU level is strongly recommended
The BCG matrix complements further portfolio analysis
It remains a useful and quick guide to resource allocation by market or product for a company or competitors.
The matrix is a simplifier of a host of business factors by selecting two as the main focus – growth and market share and shows simply and vividly how to apply them to develop strategies.