BCG Matrix Of Bcg Matrix

BCG Analysis or BCG Matrix The BCG matrix is another commonly used PPM model that is particularly popular among companies with more than three products. According to the model, a firm’s products can be divided into four categories - Stars, Question Marks, Cash Cows, and Dogs. These segments are graphically presented below

The image above makes it clear that the BCG model is relatively simpler and less time consuming to implement. In addition, it can be concluded that the categorisation as per this model takes three different pieces of information into consideration while grouping the products. First of all, the current sales of a product is considered, followed by its growth rate in the market and its overall current market share. It should be noted here that the cash cows are the most profitable products of an organisation with low market growth, but high market share. They are relatively matured products. On the contrary, stars are comparatively new products with high market growth and high market share. As a result, they face the highest competition in the market. Question marks are uncertain products that have high growth, but low share in the market. So, it is clear that the

P&G’s stage-gate PPM model is based on its Connect + Develop (C+D) system, which was designed in the early 2000s to make sure that a higher percentage of P&G’s product innovations meet its revenue goals and strategic objectives. As an FMCG multinational, P&G was competing in an already saturated market. Therefore, they needed “disruptive” product ideas that are unique in nature and have the ability to shake the market. So, it can be said that the key component of P&G’s PPM is pure innovation. The launch of Swiffer, Pampers, Tide etc. during the 2000s are the examples of such breakthrough products (Brown and Anthony,