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Growth Matrix
Growth Matrix
A chart that allows you to calculate the lost market opportunity and growth
potential of each product or product category.
Definition
Why
How
Example
Exercise
The growth–share matrix (aka the product portfolio, BCG-matrix, Boston matrix, Boston
Consulting Group analysis, portfolio diagram) is a chart that was created by Bruce D.
Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their
business units, that is, their product lines. This helps the company allocate resources and is used
as an analytical tool in brand marketing, product management, strategic management,
and portfolio analysis.
Our Definition
Why Growth Matrix?
• Analyze the potential of the industry
• Find out the opportunities lost with existing product
• Project the future course of strategic possibilities
• Pick the right market for right product
Definition
Why
How
Example
Exercise
Definition
Why
How
Example
Exercise
Growth Matrix
Relative Market Share
Category Change%
Vs
The Industry Leader
% Over Past 2 Years
?
High market share in a slow-growing industry
High Low
low market share in a mature, slow-growing industry
high market growth but low market sharehigh market growth and high market share
Definition
Why
How
Example
Exercise
Growth Matrix
?
Parachute Coco Oil
High Low
Keya Soap
ClemonKnorr Soup
Collect Industry sales data from AC Nielsen:
Find the industry leader’s sales figure
Calculate Your Sales v Industry Leader’s Sales
Find the % change of the industry from 2 years of retail sales data
Analyze the trend curve with your secondary sales curve (retail sales)
Feel free to ask any question at smnawed@gmail.com
Definition
Why
How
Sample
Exercise
Growth matrix

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Growth matrix

  • 2. Growth Matrix A chart that allows you to calculate the lost market opportunity and growth potential of each product or product category. Definition Why How Example Exercise The growth–share matrix (aka the product portfolio, BCG-matrix, Boston matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. Our Definition
  • 3. Why Growth Matrix? • Analyze the potential of the industry • Find out the opportunities lost with existing product • Project the future course of strategic possibilities • Pick the right market for right product Definition Why How Example Exercise
  • 4. Definition Why How Example Exercise Growth Matrix Relative Market Share Category Change% Vs The Industry Leader % Over Past 2 Years ? High market share in a slow-growing industry High Low low market share in a mature, slow-growing industry high market growth but low market sharehigh market growth and high market share
  • 6. Collect Industry sales data from AC Nielsen: Find the industry leader’s sales figure Calculate Your Sales v Industry Leader’s Sales Find the % change of the industry from 2 years of retail sales data Analyze the trend curve with your secondary sales curve (retail sales) Feel free to ask any question at smnawed@gmail.com Definition Why How Sample Exercise