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Introduction
We are listening all the time to the phrases ‘‘Portfolio analysis’’, ‘‘SBUs’’, ‘‘BCG’’ and other, that we know in generall what they mean or we have only heard them with their abbriviations. So, ’’Portfolio analysis’’ is the collection of products and/or some organizations and its frameworks assist businesses guiding strategic thinking and planning by relating attractiveness and competitiveness indicators. ... The best-known portfolio planning methods come from the Boston Consulting Group (BCG matrix), a leading management consulting Group and from General Electric (GE matrix) and Shell.
Discussion
The BCG matrix is built around two criteria: the reference market’s growth rate (corrected for inflation), acting as an indicator of attractiveness, and the market share relative to the firm’s largest competitor, measuring competitiveness. ... In BCG matrix there are four distinct types of product markets. ...
The BCG matrix is based in two assumptions, the one concerns the existence of experience effects and the other the product life cycle (P.
Approximate Word count = 756
Approximate Pages = 3
(250 words per page double spaced)
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