What is business portfolio analysis? Discuss how a company might use the Boston Consulting Group's growth-market matrix
What will be an ideal response?
A business portfolio is the collection of services and products that make up a company. Business portfolio analysis is the process of evaluating the different combinations of products and services a business offers. The business uses this analysis to make informed decisions about what products and services should receive more, less, or no investment. The Boston Consulting Group matrix evaluates products and services on two important dimensions: the market growth rate and the product or service's relative market share. The growth-market matrix defines four types of products and services: stars, cash cows, question marks, and dogs. Once each product and service has been evaluated, a company can determine what role each will play in the firm's future.
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