(Read also: A Black-scholes Options Pricing Model (BSOPM)) Simply put, the Growth-Share Matrix by BCG aims at offering long-term strategy plans to companies with the help of a graphical representation. Perhaps it is important for companies to recognize which product lines to discontinue, sell, or invest in so as to earn more profit. Often, companies have several product lines that might or might not profit over time. In essence, the matrix tends to measure a company’s units’ value along with its other assets so as to list a particular company’s priorities, and the way it should address them strategically. Today, this matrix model is claimed to be used by Fortune 500 companies who are reputed to have the largest market cap size worldwide. The BCG matrix is based on a planning strategy that helps companies place their products/assets in a graphical setup, the BCG Matrix model was devised in the year 1968 by the founder of Boston Consulting Group - Bruce Henderson. A management framework, the Growth-Share Matrix by Boston Consulting Group that assists businesses in managing their ventures and determining what priorities they should put first.
