![]() ![]() Haspeslagh, “Portfolio Planning: Uses and Limits,” Harvard Business Review, January 1982. ![]() The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.”Īt the height of its success, in the late 1970s and early 1980s, the growth share matrix (or approaches based on it) was used by about half of all Fortune 500 companies,Īccording to estimates. “A company should have a portfolio of products with different growth rates and different market shares. Given all that, is the BCG growth-share matrix still relevant? Yes, but with some important enhancements. The matrix is central in business school teaching on strategy.Īt the same time, the world has changed in ways that have a fundamental impact on the original intent of the matrix: since 1970, when it was introduced, conglomerates have become less prevalent, change has accelerated, and competitive advantage has become less durable. Harvard Business Review recently named it one of the frameworks that changed the world. Companies continue to need a method to manage their portfolio of products, R&D investments, and business units in a disciplined and systematic way. More than 40 years after Bruce Henderson popularized BCG’s growth share matrix, the concept is very much alive. Technology, Media, and Telecommunications.
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