I have prepared an example of how to use the BCG Matrix to evaluate the portfolio of products or services in the case of a hypothetical furniture company . It is almost a step-by-step guide!
In this first step, the company identifies which products or services it offers.
In our example, we could india telegram data identify a furniture company’s products as sofas, dining tables, cabinets, chairs, and shelves for sale.
Analysis of the BCG Matrix categories
Right after identifying the products or services, it is necessary to analyze both the market share and the growth rate of each of them.
Our practical example is perfect to illustrate this analysis. Check it out!
Sofas
It has a high market share and solana’s rollercoaster ride: what it means for smes in crypto moderate growth rate. Therefore, sofas can be classified as the Cash Cow type products for this fictitious furniture company.
Just to be clear, when I talk consumer data about market share, I’m talking about the portion of the market that the company dominates in a given category, okay?
Dining tables
For example, desks have a moderate market share but a low growth rate. We could classify them as a Doubt or Question in the BCG Matrix.
Cabinets
With a low market share and high growth rate, cabinets would definitely be the Stars !
Chairs
Chairs would be the Cash Cows in the BCG Matrix because they have a moderate market share and a moderate growth rate.
Shelves
Lastly, the shelves could be a Pineapple , since the market share is low and the growth rate is low too!
Tip: How Orgânica generated more than R$10 million in business opportunities for Móveis Masotti
Strategies for each category
Once each product or service has been identified and analyzed as in the example above, what remains is to plan the most strategic decisions for each category.
Cash Cow (sofas and chairs)
With the data in hand — and clarity about where the sofas and chairs fit in the business’s profitability hierarchy — our fictional company could adopt new strategies to maximize the cash flow of these Cash Cows.
It could achieve greater results by optimizing production and logistics processes, perhaps diversifying product designs, or launching new lines of related products (accessories, modules, etc.).