![]() The Growth-Share Matrix thus maps the business unit positions within these two important determinants of profitability.”ĭespite criticism that the Growth-Share Matrix oversimplifies complex relationships in a market, it can be a useful tool to gain a quick overview of mixed business products. It is based on the observation that a company’s business can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name “growth-share.” Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. “The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970s. The NetMBA Business Knowledge Center describes the BCG Growth-Share Matrix as follows: One of the tools that we learned about was the BCG Growth-Share Matrix. At this point, I remembered the strategic marketing classes I took during my time at university. ![]() While working with a recent client, we tried to answer which product categories their business should keep investing in and which categories are not worth the effort of selling.
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