Strategy
BCG matrix
The Boston Consulting Group designed the ‘BCG matrix’ in the 1970s.
Read article
keymodelsAll comparisons
Compare
BCG matrix vs The attractiveness/advantage matrix (GE/McKinsey)
The rebuild strategy identifies this as a high-intent comparison. The page uses extracted article signals now and leaves room for later editorial enrichment.
Strategic alternativeFinanceFinanceMarketing
Strategy
The attractiveness/advantage matrix (GE/McKinsey)
You need to undertake a portfolio analysis of your main business segments, and the best tool for this is the Attractiveness/Advantage Matrix.
Read articleChoice logic
Use this when.
Use the BCG matrix to compare the growth and profit potential of business units or products. Classifying each position supports a choice to build, hold, harvest or divest and helps management shape the overall portfolio into a financially sustainable mix.
Use it whenever the organisation must evaluate and rebalance a portfolio of product market segments.
Extracted signals
Strengths, limits, and pitfalls.
BCG matrix
- Define the market, the comparison competitor and the growth threshold before plotting products. Consistent boundaries make the portfolio discussion more credible and less vulnerable to internal bias.
- First, estimate the expected market growth rate for every product or service in scope. Then calculate relative market share, normally by comparing the product’s share with that of the largest competitor. Plot each offer against the two axes using a consistent set of thresholds.
- Stars hold a high relative share in a rapidly growing market. They may already be profitable but usually need continued investment to defend and extend their position.
Watch for
- Do not infer that a question mark deserves investment simply because its market is growing. Capital creates value only when the business has a credible route to advantage, share and attractive returns.
The attractiveness/advantage matrix (GE/McKinsey)
- Make every criterion, weight and score explicit, then test how robust the portfolio conclusion is to reasonable alternative assumptions.
- First define market attractiveness. Criteria should reflect the sector, but a useful starting set is:
- market size relative to other segments;
Watch for
- Composite scores can create false precision. Subjective definitions, weights and ratings may drive the recommendation more than the underlying market evidence.
Read next
Open the full model articles.
Each comparison links back to the full articles so you can inspect examples, steps, caveats, and related templates before choosing.
Application bridge
Related templates.
Interface Management PlanInterface Management Plan Purpose. Use this plan to identify and manage the organisational, technical, interpersonal, logistical and political interfaces within the programme, across its portfolio and with external parties. It turns interrelationships and interdependencies into named controls, owners and risks rather than leaving them between component boundaries. Application. Develop the plan earProcurement Management PlanProcurement Management Plan Purpose. Use this plan to decide what the programme should obtain externally and how each acquisition will move from need to an awarded agreement. It covers facilities, goods, materials and external resources, together with the sourcing, solicitation, evaluation and contractual methods appropriate to each requirement. Application. Prepare the plan early because procuremProgram Benefits Sustainment PlanProgram Benefits Sustainment Plan Purpose. Use this plan to maintain the conditions that allow programme benefits to continue accruing after transition. It turns the handover commitments in the benefits transition plan into enduring operational mechanisms, measures, responsibilities and responses. Application. Treat it as a living document. Customer demand, operating capacity, technology, regulatiProgram Scope StatementProgram Scope Statement Purpose. Use this statement to define what the programme will accomplish, why the work is being pursued and where its boundaries lie. It provides the context for later decisions and protects the programme from absorbing work that belongs elsewhere, was never authorised or does not contribute to success. Application. The scope statement is progressively elaborated as the pro