By assigning each business to one of these categories, senior executives / business leaders of Adidas can take decisions regarding allocation and employment of resources, and business strategy decisions such as entry into new segment, exit from a loss making business, employing more capital to increase market share or profitability etc.Įach of the four quadrants represents a specific combination of relative market share, and growth rate: Each quadrant represents a certain degree of profitability. The four quadrants / components of BCG matrix / Growth Share matrix are – Questions Marks, Dogs, Cows, and Stars. The BCG matrix / Growth Share matrix comprises four quadrants along two axis – market share and rate of growth. What are the four components / quadrants of BCG matrix / Growth Share matrix?

BCG Matrix / Growth Share matrix helps the Adidas to efficiently deploy the resources in various businesses in Footwear industry those are most likely to deliver higher rate of return. How and When to use BCG Matrix / Growth Share Matrix?Īs mentioned earlier in the analysis – BCG matrix is a portfolio management framework so it should be used when an organization is running different businesses in either different markets or different industries. You can contact EMBA Pro for detailed BCG / Growth Share Matrix analysis for Case Studies and Corporations The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.” In the Product Portfolio, 1970, Bruce Henderson, CEO of BCG Matrix, said - “A company should have a portfolio of products with different growth rates and different market shares in Footwear and other associated industries. During its peak of popularity in 1970’s and 1980’s, BCG matrix / Growth Share matrix was used by almost half of the fortune 500 companies. The Growth Share matrix is a business portfolio management framework that helps organization such as Adidas in deciding – How to prioritize different businesses. It was published in BCG in-house magazine called – Perspectives. The growth share matrix was created by BCG founder Bruce Henderson in 1968.

believes that BCG matrix / Growth Share matrix is highly efficient strategic tool for large diverse conglomerate. What is BCG / Growth Share Matrix? Introduction to BCG MatrixĪt EMBA Pro, we highly recommend Adidas to use the BCG matrix / growth share matrix for portfolio management as Adidas is managing diverse businesses and multiple products.

Bcg matrix for nike