1. Explain the different sections of the Boston Consulting Group Matrix. Specifically, in
detail, explain what each section represents, and how a company should treat their
products/services that fall under each category. (12 points)
The Boston Consulting Group Matrix is used to analyze a company’s portfolio.
Each business is graphed along this matrix according to their growth rate in their market
and market share.
– Stars, high-growth businesses that have a strong competitive position and tend to
need heavy investment.
EX) Energy, heath care, and transportation.
Companies will treat their “Stars” great, as it brings in much revenue and has a
good competitive stance. Supervision is needed in case of change but not nearly as
bad as “Question Marks” products/services as they already have a good
competitive stance in the market.
– Question Marks, high-growth businesses that have weak competitive positions and
need much investment to improve their competitive stance.
EX) Wind farms.
