![]() The underlying foundation of Bruce Henderson's model is that an increase in market share will result in an improvement in cash generation. The x-axis generally denotes the market growth rate, or cash usage - with the y-axis denoting relative market share, or cash generation.īruce Henderson reasoned that established and mature areas of a business where required to generate significant income (cash cows) which could then be invested into new highly profitable market leading products (stars). ![]() ![]() The matrix is scored from low to high on both the x-axis and y-axis. The quadrants are split into combinations of "market growth" and "market share", hence also being known as the growth-share matrix or growth-market-share matrix. The concept is based on four quadrants in which a company's strategic business units (SBU) or products/brands are classified. ![]() Devised as a portfolio planning tool, or corporate planning tool, the BCG growth-share matrix was first conceived by Bruce Henderson of the Boston Consulting Group back in the 1970's. ![]()
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