BCG growth matrix was created by Boston Consulting Group’s founder Bruce Henderson in 1968. This was just a small and provocative essay named Perspectives. Right now, more than 500 fortune companies have been using it since the height of its success. It is nothing but a table divided into four sides with its unique symbol defining its profitability. By limiting their business to four quadrants, the executives will know where to focus more and spend most of their values.
The following are the few benefits of the BCG matrix:
● It is easy to use since clear guidance is provided to each the quadrant
● There are only two dimensions and four quadrants, so it is simple to use.
● It helps in focusing on the important resources that generate more value
● In the sense of large-scale manufacturing operations, the matrix is very beneficial.
2. What is BGC Matrix
As already said, in the BCG growth matrix, there are four quadrants, and each defines its value and position. The - - - BCG matrix includes question marks, stars, cash cows, and dogs.
- The question mark is nothing but just a mystery in the BCG matrix.
- Star is the brand with the highest share.
- Cash cows are brands that have the highest market share value
- Dogs have a small market share.
- To make a BCG matrix, we should first select the product. Choosing is important, so we should choose one unit.
- Then define the market. Determining the market helps in understanding the portfolio position. Then calculate the market share and find out the market area. And the final step is to draw the matrix circle.
3. How to Create a BCG Matrix
Creating a matrix diagram in EdrawMax Online is pretty simple. The free matrix diagram maker has several features, like directly importing the data from the .csv file or creating one from scratch using free templates.
Step 1:Login EdrawMax Online
Log in EdrawMax Online using your registered email address. If this is your first time accessing the tool, you can create your personalized account from your personal or professional email address.
Step 2: Choose a template
EdrawMax comes with hundreds of free matrix diagram templates. Select a pre-designed template from the product based on your preference or need by selecting the ""Business"" on the left navigation pane. It will open up several matrix diagram types, like T-chart, main idea diagram, and more. Alternatively, press ""+"" in EdrawMax Online canvas to create a matrix diagram from scratch.
Step 3:Customize the diagram
Customize your matrix diagram by changing the symbols and shapes as required. With the easy drag-and-drop feature of EdrawMax Online, you can use all the relative elements from libraries.
Step 4:Export & Share
Once your matrix diagram is completed, you can share it amongst your colleagues or clients using the easy export and share option. You can export a matrix diagram in multiple formats, like Graphics, JPEG, PDF, or HTML. Also, you can share the designs on different social media platforms, like Facebook, Twitter, LinkedIn, or Line.