The market changes quite quickly

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Relying solely on the BCG model. It is best to combine the BCG matrix with other market and product portfolio analysis tools. This could be the Ansoff matrix , ABC, and XYZ analysis . The set of methods will depend on the specific business situation.

Incorrect assessment of the niche or audience. Apple technology can be a "Dog" for mass customers with low purchasing power. And in the segment of buyers with medium and high income - a "Star" or even a "Cash Cow". Therefore, it is worth segmenting the market , creating a matrix and conducting data analysis for each key customer group.

One-time matrix construction, which can make the matrix outdated. It is worth greece phone number list recalculating and updating it at least once a year. This way, you will be able to track changes in time and promptly adjust the strategy, if necessary.

Let's sum it up
The BCG matrix is ​​a simple and visual tool for portfolio analysis. It will help to prioritize product development, determine their prospects and formulate a long-term strategy. The model is often used in economics, marketing and management.

The essence of the method: all products or areas of work can be divided into four groups, depending on objective data - market share and growth rates. These are "Cash Cows", "Stars", "Question Marks" and "Dogs". For each category of products, the BCG model provides recommendations for development. They correlate well with the stage of the product or service life cycle.

To create a BCG matrix, you need to select business units for analysis and determine their sales volume. Then calculate the relative market share and its growth rate. You can visualize the matrix in any graphic editor or Excel file.

The BCG method provides recommendations on what to do with each product category for business success and long-term profit growth - the list of various advantages is large. However, the BCG matrix also has several disadvantages that are important to consider in your work.