How do I Place my Products / Services in the BCG?




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Giuseppe Lenci
Analyst, Colombia

How do I Place my Products / Services in the BCG?

Currently I'm trying to place the services of my company in the BCG matrix, and I have problems in theses aspects:
1. Should the products be placed by their relation of cost-benefit?
2. My core business moves around the handycapped people, and it's very hard to know what is the growth of the "market", so I don't know the effectiveness of placing my services if the data is wrong.
3. About the stars. In the explanation is said that star products have an aggressive cash flow requirement. My core service hardly reaches a profit, depending on the season, but it's the service with generates more income... is this a star?
Please help me... Thanks.
 

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3
Shane Greyvenstein
Consultant, United States
 

Using the BCG Matrix

1. Not necessarily. It might determine their potential in respect of revenue growth but this is not a primary consideration in this matrix; consider the picture as a whole.
2. In a strict sense, your growth potential is limited by population growth (assuming constant disability ratios) plus any trends in particular disability. An opportunity might be repositioning brands for the assistance market, for instance, as concerns the elderly. Here there is a trend towards an aging population in certain countries. It really depends on the products and their individual potentials.
3. You need to consider your industry. Note the position is *relative*. If it is typical for this industry to have low-margin, seasonal income that's one thing but if this is specific to your business you may have a problem. Benchmarking your own performance against competitors would be a good start.

 
2
Dameh Divine
Business Consultant, Ghana
 

Apply Market Research When Using the BCG MATRIX

Placing your product in the BCG matrix does not guarantee market growth and profit. You should apply... Sign up

 
0
santiago
HR Consultant, Angola
 

How to Do BCG Plotting

I would comment that the model is used to evaluate the state of your portfolio of products of market... Sign up

   

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