An Analysis of the Strategies Applied to the Different Strategic Business Units of the BCG Matrix

Research Article
Open access

An Analysis of the Strategies Applied to the Different Strategic Business Units of the BCG Matrix

Xinrui Pan 1*
  • 1 Zhejiang University of Finance and Economics    
  • *corresponding author alliepxr@foxmail.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/26/20230599
AEMPS Vol.26
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-95-9
ISBN (Online): 978-1-915371-96-6

Abstract

When corporate organizations desire to improve their capacity for strategic planning of their product management, The BCG Matrix is one of the most well-known and effective strategic tools. The paper attempts to analysis the different portfolios of the BCG and the corresponding choices of business strategies, combining them with the product lifecycle theory and developing a corporate strategic plan in conjunction with the actual based on existing literature and data. The result shows that in the BCG Matrix, corporate strategies and products are closely linked, and a strong and competitive product can help a company penetrate the market rapidly in the face of fierce competition. It provides companies with a choice of business strategies on SBU (Strategic Business Units), and helps them plan and distribute their available resources through the strategies. According to the result, the strategic operating unit depends on its position in the diagram, different operational directions are determined, and the operational strategy has a different focus depending on the product stage.

Keywords:

BCG matrix, portfolio planning, strategy planning, business organization, business improvement

Pan,X. (2023). An Analysis of the Strategies Applied to the Different Strategic Business Units of the BCG Matrix. Advances in Economics, Management and Political Sciences,26,373-378.
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References

[1]. Madsen D O. Not dead yet: the rise, fall and persistence of the BCG Matrix [J]. Problems and Perspectives in Management, 15(1): 19-34. (2017).

[2]. Mohajan, H. K.. "An Analysis on BCG Growth Sharing Matrix." MPRA Paper (2017)..

[3]. Reeves M, Moose S, Venema T. The growth share matrix [J]. BCG–The Boston Consulting Group, 2014.

[4]. Armstrong J S, Brodie R J. Effects of portfolio planning methods on decision making: Experimental results [J]. International Journal of Research in Marketing, 11(1): 73-84. (1994).

[5]. Morrison, Alan, and Robin Wensley. “Boxing up or boxed in?: A short history of the Boston Consulting Group share/growth matrix.” Journal of Marketing Management 7(2), 105-129. (1991).

[6]. Song Yixiang. Understanding and application of Boston matrix [J]. China High-Tech Enterprise,(16):13. (2008).

[7]. Wang Chuanji. Product portfolio analysis based on Boston matrix [J]. Business, (35):115. (2015).

[8]. Levitt T. Exploit the product life cycle [M]. Graduate School of Business Administration, Harvard University, 1965.

[9]. Yu Dan. A study of corporate strategy based on Boston matrix [J]. China Collective Economy, (24):39-40. (2021).

[10]. Kuvaeva, T., and E. Urgel. “THE BCG MATRIX.”

[11]. Dai Zhishen. Rethinking the limitations of the Boston Matrix [J]. Business Times, (14):78+53. (2010).


Cite this article

Pan,X. (2023). An Analysis of the Strategies Applied to the Different Strategic Business Units of the BCG Matrix. Advances in Economics, Management and Political Sciences,26,373-378.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN:978-1-915371-95-9(Print) / 978-1-915371-96-6(Online)
Editor:Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.26
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Madsen D O. Not dead yet: the rise, fall and persistence of the BCG Matrix [J]. Problems and Perspectives in Management, 15(1): 19-34. (2017).

[2]. Mohajan, H. K.. "An Analysis on BCG Growth Sharing Matrix." MPRA Paper (2017)..

[3]. Reeves M, Moose S, Venema T. The growth share matrix [J]. BCG–The Boston Consulting Group, 2014.

[4]. Armstrong J S, Brodie R J. Effects of portfolio planning methods on decision making: Experimental results [J]. International Journal of Research in Marketing, 11(1): 73-84. (1994).

[5]. Morrison, Alan, and Robin Wensley. “Boxing up or boxed in?: A short history of the Boston Consulting Group share/growth matrix.” Journal of Marketing Management 7(2), 105-129. (1991).

[6]. Song Yixiang. Understanding and application of Boston matrix [J]. China High-Tech Enterprise,(16):13. (2008).

[7]. Wang Chuanji. Product portfolio analysis based on Boston matrix [J]. Business, (35):115. (2015).

[8]. Levitt T. Exploit the product life cycle [M]. Graduate School of Business Administration, Harvard University, 1965.

[9]. Yu Dan. A study of corporate strategy based on Boston matrix [J]. China Collective Economy, (24):39-40. (2021).

[10]. Kuvaeva, T., and E. Urgel. “THE BCG MATRIX.”

[11]. Dai Zhishen. Rethinking the limitations of the Boston Matrix [J]. Business Times, (14):78+53. (2010).