12

The growth/share matrix (BCG)

This tool will help you:

  • Set out the relative strategic positioning of each major segment (or business, in corporate strategy)
  • Pinpoint areas for investment, holding or withdrawal
  • Provide more quantification, less subjectivity than that of Tool 11

About this tool

‘If you want a friend, get a dog,’ pronounced corporate raider Carl Icahn. He meant that you don’t expect to make friends in his line of business, not that you should go out and buy a dog business.

The latter, as defined by The Boston Consulting Group (BCG), is one where you have a low relative market share in a slow-growing market. The growth/share matrix, along with its catchy menagerie, is one of those tools that has held firm over time. ...

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