The Boston Consulting Group's Growth-Share Matrix
Market Growth Rate vs Relative Market Share
Strategic Planning
Planning: Viable fit between organization’s objectives and its changing market opportunities
Key: investment portfolio, future profit potential, strategy
2*2 Matrix
Size of competitive advantage Vs. No. of approaches to competitive advantage.
Fragmented
Small and Regionalized.
Profitability not related to size.
Advantage gained by focus.
No premium on growth.
Example: Specialty restaurants or designer labels.
Specialization
Focused segments.
Steep learning curves.
Example: Cray research in field of Super computers.
Stalemate
Where it is difficult to gain advantage.
CA often is the sheer sustaining power.
Example: Kellogg's in India.
Volume
Where there are economies of scale and IRS operates.
Constrained by market segmentation and differentiation.
Example: The car industry.