ABSTRACT
This chapter contains Boston Consulting Group Matrix; the principles on which it is based; underlying assumptions; guidance on application, and relevant issues; and related models. Boston Consulting Group Matrix model defines particular product types within an organization's product portfolio. Market growth rate arid market share affect the profitability and cash generation potential of products. A company can increase market share and exploit market growth rate in order to move into a more attractive product position for example, from dog position to star. Higher marketing investment would normally be required for question marks than for cash cows or stars. As experience increases, the required amount of investment for product development decreases. Managers may analyse the product portfolio to enhance strategy evaluation. Resources should be allocated appropriately to the type of product for example, increase investment in question marks should be increased, investment in dogs should be decreased or stopped.
