Bcg Matrix Advantages And Disadvantages

I do also think there can be many benefits to use additional strategies other than the SWOT strategy and the Grand strategy .

The BCG matrix is used to identify fast growth opportunities accourding to that specific companies products in regards to the growth rate as well as the market shares. When the company takes advantage of high cash flow in hot selling products that company can make a profit on market shared growth opportunities. “ Named for its creator, the Boston Consulting Group, the BCG matrix aims to identify high- growth prospects by categorizing the company’s products according to the growth rate and market share. By optimizing positive cash flows in high- potential products, a company can capitalize on market-share growth opportunities.” Arline, K. (2015, February 3). However, like many strategies this does have its share of disadvantages. The BCG Matrix as good as it is, is only really effective in rating businesses and companies as very profitable

They are currently in the process of drawing their focus onto toys, games, and other actives that can get children’s attend faster than a book can. I do not think this is a good strategy because they are still trying to fix their lack of profit from the outside in, rather than the inside out. “Toys and games, a small but increasingly critical part of the business, provided a bright spot, growing nearly 15 percent in the last quarter. In a conference call with investors, Mr. Boire underscored this point by singling out coloring books and strong sales of Adele’s new album “25” among the company’s recent successes. Some analysts said there were reasons to be hopeful about the company’s future. Through Black Friday weekend, comparable store sales were up 1.1 percent, providing an encouraging forecast for the chain’s holiday sales.” Alter, A. (2015, December