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BCG Matrix

Developed by the Boston Consulting Group in 1970, the BCG Matrix (Growth-Share Matrix) is a strategic portfolio analysis tool that plots business units or products across two dimensions: relative market share (horizontal axis) and market growth rate (vertical axis). The resulting 2x2 grid produces four quadrants — Stars (high share, high growth), Question Marks (low share, high growth), Cash Cows (high share, low growth), and Dogs (low share, low growth). In a workshop context, the BCG Matrix forces teams to have an honest conversation about which products or initiatives deserve investment, which should be harvested for cash, which need a strategic decision, and which should be divested. It prevents the common trap of spreading resources evenly across a portfolio regardless of strategic value. Teams must gather at least rough data on relative market position and industry growth before the session — numbers make the conversation real. The tool is most powerful when combined with qualitative discussion about competitive dynamics and market trajectory, not just plotted as a static snapshot.

Durata
1h–2h
Dimensione del gruppo
3–15 people
Materiali
BCG Matrix template (A1 or projected), sticky notes, markers

Copione di facilitazione

  1. 1

    Project the empty 2x2 and walk the axes: relative market share increasing to the right, market growth increasing upward. Agree the thresholds out loud before plotting anything — for example, 'above 10% growth counts as high' — so quadrant boundaries aren't relitigated item by item.

    10 min
  2. 2

    Present the pre-gathered data pack: growth rate, relative share, and revenue per product or unit. Give the room five minutes to challenge the numbers themselves — sources, dates, definitions — before any positions are debated.

    10 min
  3. 3

    Plot each unit as a circle sized by revenue, placed by the data rather than by advocacy. Let each unit's owner confirm the placement or argue, with evidence, why it should move.

    15 min
  4. 4

    Work quadrant by quadrant and force a directive per item: invest and defend for Stars, decide fast — fund or exit — for Question Marks, harvest efficiently for Cash Cows, and an honest keep-or-divest case for each Dog. When the room hesitates, ask: 'Would we start this business today?'

    25 min
  5. 5

    Draw the resource flows: connect specific Cash Cows to the Stars and Question Marks they should fund. If a Question Mark has no funding source, it just got its answer.

    10 min
  6. 6

    Close with commitments: one owner and one next action per unit, plus a date to re-plot the matrix — placements are a snapshot of a moving market, not a verdict.

    10 min

Suggerimenti

  • Gather real data before the session — gut feel placements lead to political debates rather than strategic clarity.

  • Use market growth rate benchmarks (e.g.

  • >10% = high in most industries) agreed by the team upfront.

  • Don't treat the matrix as permanent: markets shift and so should classifications.

  • Challenge the assumption that Dogs are always bad — sometimes a low-growth, low-share product serves a key customer segment.

Errori comuni

  • Plotting from gut feel because nobody gathered data beforehand — the session becomes advocacy and turf defence rather than analysis

  • Treating quadrant labels as verdicts — a Dog that serves a strategic customer segment or blocks a competitor can be worth keeping; the label starts the conversation, it doesn't finish it

  • Letting unit owners place their own products unchallenged — every owner believes their product is a Star

  • Ending with a beautifully plotted matrix and no decisions — without directives, owners, and a re-plot date, the exercise was decoration

Variazioni

Run a 'Future BCG' where teams predict where each item will sit in 3 years given current trajectories. Combine with Ansoff Matrix to map diversification moves from current Cash Cows into new growth areas.

Casi d'uso

Product portfolio reviewAnnual strategic planningInvestment prioritisation workshopsBusiness unit performance reviewM&A target evaluation

Quando usarlo

  • An annual strategy review needs to move from 'everything is a priority' to explicit invest, harvest, and divest calls across the portfolio

  • Resources are spread evenly across products and nobody can articulate which offerings fund which bets

  • A leadership team disputes where the growth actually is, and rough market-share and growth data exists to settle it

  • An acquisition or divestment discussion needs a shared one-page picture of the current portfolio before options are debated

Quando non usarlo

  • You have a single product or service — the matrix compares portfolio items; use SWOT or the Business Model Canvas for one offering

  • No market data is available and none can be gathered — gut-feel placements turn the session into a political negotiation dressed as analysis

  • The market is nascent or being redefined, so 'market share' and 'growth rate' have no meaningful denominator — scenario planning fits better

  • The team expects the matrix to output execution plans — it produces a strategic directive per unit; roadmapping happens afterwards

Metodi correlati

Domande frequenti

How long does a BCG Matrix workshop take?

Reserve 60–120 minutes for a portfolio of roughly five to fifteen units, assuming the market data was gathered beforehand. Data collection is the real time cost — allow a week of lead time for owners to source growth and share figures.

What data do you need for a BCG Matrix session?

Per unit: an estimated market growth rate, relative market share — your share divided by the largest competitor's — and revenue for sizing the circles. Rough but sourced numbers are fine; no numbers at all turns the workshop into a political negotiation.

How many people should attend a BCG Matrix workshop?

Between 3 and 15: the owners of the plotted units plus the people who can actually commit investment decisions. More observers than deciders turns the quadrant directives into presentations instead of choices.

Can you run the BCG Matrix remotely?

Yes: set up a shared whiteboard with the 2x2 template, pre-plot the circles from the data before the call, and spend the live session challenging placements and agreeing directives. Pre-plotting matters remotely because dragging circles around on a call eats the discussion time.

BCG Matrix vs SWOT analysis — when should you use which?

The BCG Matrix compares multiple products or business units to allocate investment across a portfolio; SWOT examines a single business or product in depth. They stack well: plot the portfolio with BCG first, then run SWOT — or an Ansoff Matrix for growth moves — on the units that need a closer look.

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Method descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from Boston Consulting Group (Bruce Henderson, 1970).