Thursday, December 11, 2008

BCG & McKinesy Matrix

http://www.prem-ashok.blogspot.com
The BCG Matrix method is the most well-known portfolio management tool. It is based on product life cycle theory. It was developed in the early 70s by the Boston Consulting Group. The BCG Matrix can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. The Boston Consulting Group Matrix has 2 dimensions:market share and market growth. The basic idea behind it is: if a product has a bigger market share, or if the product's market grows faster, it is better for the company.
WHAT IS THE MCKINSEY MATRIX?
The McKinsey Matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.


to know more about BCG & McKinesy matrix go to:
http://www.12manage.com/methods_bcgmatrix.html

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