These products currently show a low market share but are in a market with a high growth rate. In business, Quadrant 1 is heuristically known as the Question Marks. Quadrants 3 and 4 both represent a low growth rate in the market, with the third showing a high market share and the fourth performing poorly in market share. The second quadrant represents high market growth and high market share. The first quadrant contains products with high market growth but low market share. These quadrants contain the products that are being analyzed. The 2x2 matrix structure creates four quadrants in the BCG matrix template. It reflects both its historical growth rate and its growth potential in the same market. On the other hand, the vertical axis represents the product’s growth rate in a specific market. Basically, it displays the size of the market share, and the strength of the product’s performance within a particular market. The horizontal axis represents a product’s performance based on market share. Either way, the matrix structure follows a 2x2 matrix setup.
You can make your own BCG matrix template or you can choose from the many existing ones that you can download for free. Understanding BCG matrix Explanation of Matrix Structure The company developed the first BCG matrix template in order to evaluate the potential and strategic position of its own brand portfolio. It was created by the founder of BGC or Boston Consulting Group, by the name of Bruce Henderson. The BGC matrix template has had many versions over the years, but it was first used during the 1970s.
On the opposite corner, the matrix reveals products that are not meeting target market growth or market share, and thus would be more viable for the company to sell to avoid taking more losses. Through the matrix, a business can easily see which products need to be kept in the portfolio because they are generating considerable revenue. With proper implementation, the BCG matrix reveals plenty of useful information that businesses can use to make decisions regarding their products and services. Its primary defining factors are market growth rate and market share. The matrix consists of a 2x2 structure for classifying the products. It is a popular business tool used for brand portfolio evaluation, particularly its market standing. The BCG matrix is also commonly called the product portfolio matrix. About the BCG Matrix Template Explanation of BCG Matrix
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