![]() During the days when the complexity perhaps was much lesser, the Boston Consulting Group model (developed by Bruce Henderson) provided a simple solution for managing your portfolio of products. Identifying which products, services and investments should be continued and with what level of investment is a complicated yet extremely important task. While it is easier to evaluate the current cash-generating business units, businesses must focus on the future, and accordingly change their product, service or investment portfolio to remain profitable and relevant in the ever-changing market environment. ![]() The need to come up with a strategy of providing products or services that are profitable now, but will remain profitable and don’t burn cash is very important. Analyze and take action based on the quadrant Calculate the relative market share The formula to calculate relative market share: 4. Dogs How to use the BCG Matrix Tool? Step – 1 Step – 2 Step – 3 Step – 4 Step – 5 Step – 6 1. Understanding the BCG Matrix Understanding the dimensions of Relative Market Share and Market Growth rate in the BCG Matrix Relative market share Market growth rate Creating BCG Matrix of your business portfolio 1.
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