A Presentation On B.C.G. Growth – Share Matrix

By Mukesh Gupta

INTRODUCTION :-
Bruce Henderson and his colleagues at the Boston Consulting  Group developed the growth – share matrix, also known as Boston Box. It was developed to assist manager in determining  how they should use funds from successful products to find growth in other businesses.
It is based on the observation that a company’s business units can be classified into four categories based on  combination of  market growth and market share relative to the largest competitor. The Boston matrix classifies a firm’s products according to their cash usage and their cash generation along the dimensions of  market growth rate and relative market share. Market growth rate is used because it is an indicator of the product’s cash requirements and  market share is used because it is an indicator of the product’s ability to generate cash.

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