BCG Matrix: what it is and how to use it in product strategy
The BCG Matrix is a framework widely used by technology companies for the management of digital products and for the definition of their Growth strategies .
Throughout this article, you will better understand what the BCG Matrix is , how this structure relates to the product life cycle , when this analysis should be done and how to do it in the context of product management .
What is BCG Matrix
The BCG Matrix (or Growth Share Matrix) is a visually appealing strategic tool created in the 1970s by Bruce Doolin Henderson, founder of the Boston Consulting Group . This framework aims to support companies in the management of their product portfolios , analyzing the market share and growth potential of their products.
Considering the life cycle of products, the methodology helps managers make the best decisions about keeping or removing an item from the portfolio, in addition to providing relevant data to support product or company positioning strategies .
The BCG Matrix also helps managers to have a global view of their portfolios , considering one product in relation to another, evaluating criteria such as sales volume, level of effort and monthly revenue.
In terms of structure, the BCG Matrix is divided into 2 axes and 4 quadrants , as we will see next.
