![]() ![]() A coefficient of 1.0 indicates that the company is close to leadership. The relative market share is also divided into "high" and "low", and the border between them is 1.0. When constructing the BCG matrix, the growth rate of sales of goods is divided into "high" and "low" by a conditional line at the level of 10%. Bcg matrix for healthcare industry series#The growth rate of the market in which the enterprise operates with its products determines the vertical component of the circle in the matrix.įrom the BCG matrices, if they are performed for different periods of time, it is possible to build a kind of dynamic series that will give (a visual representation of the patterns of movement in the market of each product, the directions and rates of promotion of goods on the market. Product market share relative to the largest competitor, which determines the horizontal position of the circle in the matrix The volume of sales in value terms, it is represented on the matrix of the area of the circle The BCG matrix is compiled for the entire portfolio, and for each product the following information should be available: The matrix is based on a well-known premise - the greater the share of the product on the market (the greater the volume of production), the lower the unit costs per unit of output and the higher the profit as a result of relative economies of production volumes. The matrix makes it possible to determine which product of the enterprise occupies a leading position compared to competitors, what is the dynamics of its markets, and allows for a preliminary distribution of strategic financial resources between products. This matrix allows a business to categorize products by their market share relative to major competitors and annual growth rates in the industry. ![]() Therefore, this matrix is better known as the Boston Consulting Group matrix, or the BCG matrix. The two-dimensional matrix developed by the Boston Advisory Group has received wide application in the practice of strategic choice. ![]()
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