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How do I Place my Products / Services in the BCG?

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Giuseppe Lenci
20
Giuseppe Lenci
Analyst, Colombia

How do I Place my Products / Services in the BCG?

Currently I'm trying to place the services of my company in the BCG matrix, and I have problems in theses aspects:
1. Should the products be placed by their relation of cost-benefit?
2. My core business moves around the handycapped people, and it's very hard to know what is the growth of the "market", so I don't know the effectiveness of placing my services if the data is wrong.
3. About the stars. In the explanation is said that star products have an aggressive cash flow requirement. My core service hardly reaches a profit, depending on the season, but it's the service with generates more income... is this a star?
Please help me... Thanks.

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  Shane Greyvenstein
3
Shane Greyvenstein
Consultant, United States
 

Using the BCG Matrix

1. Not necessarily. It might determine their potential in respect of revenue growth but this is not a primary consideration in this matrix; consider the picture as a whole.
2. In a strict sense, your growth potential is limited by population growth (assuming constant disability ratios) plus any trends in particular disability. An opportunity might be repositioning brands for the assistance market, for instance, as concerns the elderly. Here there is a trend towards an aging population in certain countries. It really depends on the products and their individual potentials.
3. You need to consider your industry. Note the position is *relative*. If it is typical for this industry to have low-margin, seasonal income that's one thing but if this is specific to your business you may have a problem. Benchmarking your own performance against competitors would be a good start.

  Dameh Divine
2
Dameh Divine
Business Consultant, Ghana
 

Apply Market Research When Using the BCG MATRIX

Placing your product in the BCG matrix does not guarantee market growth and profit. You should apply Market Research to determine the state of your 4Ps in order to move forward in your no doubt turbulent business environment.

  santiago
0
santiago
HR Consultant, Angola
 

How to Do BCG Plotting

I would comment that the model is used to evaluate the state of your portfolio of products of markets.
Thus you have black and white TV, colour TV and HDTV, new SMDTV (super mobile HDTV) for example.
The black and white is a dog, no real sales, colour is the cash cow, HDTV the star, and SMDTV is a question mark. The size of the circle can be used to show the size of the market or the net contribution to the business, if you want market share suggest using a different model.

 

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More on Strategic Portfolio Management
Summary Discussion Topics
topic Example BCG Matrix: Coca Cola & Pepsi Cola
topic 10% Limit in Market Growth in BCG Matrix
topic Modified BCG Matrix 2.0
topic Company Strategy if Lacking Question Marks?
🔥 Pitfalls in Strategic Portfolio Management. How to Avoid Them
👀How do I Place my Products / Services in the BCG?
topic The BCG Matrix and Synergy Effects
topic Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child
topic Assumptions of the BCG Matrix
topic BCG Matrix is useless!
topic BCG Matrix Star Strategies and Examples
topic Advantages and Disadvantages of Portfolio Planning Tools
topic Application of BCG Matrix in Forestry
topic Differences Between BCG Matrix and Ansoff Matrix
topic How to Calculate the Relative Market Share in BCG Matrix?
topic BCG Matrix in Emerging or Fragmented Markets
topic BCG Matrix: Can Dogs be More Lucrative than Cash Cows?
topic Direction of Arrows in the BCG Matrix
topic Distinction Between PLC and BCG Matrix?
topic BCG Matrix Question Mark Strategies and Examples
topic The 4 BCG Categories are not Always Stages
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