Boston Consulting Group (BCG)

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The BCG matrix is a tool for evaluating the value of a company’s activities according to two well-defined criteria: the rate of market growth and the rate of market share that the company holds. The growth rate is usually measured from the old statistical data available. Le taux de croissance est élevé ou faible selon qu’il est supérieur ou inférieur à 10 %. This is the reference rate. The market share is calculated according to the weight of the company compared to its first competitor on the market.

It is customary to describe a company’s competitive position as weak when its relative market share is less than 1. Conversely, it is strong when its market share is greater than 1. Once these two elements have been calculated, the BCG matrix proposes to classify the company’s activities into 4 precise categories: stars, cash cows, dilemmas and dead weight. The matrix makes it easier to assess the performance and relevance of the company’s business portfolio.