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balanced business/product portfolio is the Boston Consulting Group
(BCG) growth-share matrix (Figure 2.1.)
It is important to note that this model can be used in relation to countries,
products, services or brands and not just SBU’s or divisions. The Boston
Consulting Group developed this matrix linking market growth and market
share. A company’s SBU, product, service or brand is measured by market
share relative to competitors to determine its strength in the market place
(Drummond et al, 2003). Briefly, an organisation’s portfolio can be
determined using the four categories depicted in this matrix. Each SBU,
product, service or brand is measured in relation to the competition in
terms of market share as well as the amount money that is used and
generated to sustain the portfolio.
Figure 2.1: The BCG Growth-Share Matrix
