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BCG

 

The Boston consulting group (BCG) Matrix is designed specifically to enchance a multidivisional firms efforts to formulate strategies. The BCG Matrix allows a multidivisional organization to manage its portafolio of businesses by examining trhe relative market share position and the industry growth rate of each division relative to all other divisions in the organization.

The relative market share position is the ratio of a divisions own market share or revenues in a particular industry to the market share or revenues and its given on the x-axis of the BCG matrix. The y-axis represents the industry growth rate in sales.

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