Farewell to the Growth Share Matrix after more than 35 years of usage? A critical examination of the BCG Matrix

Drews, Hanno

doi:10.1007/s00187-008-0041-8

Cited by 6 publications

(4 citation statements)

References 18 publications

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“…The model is based on the simplifying condition, that most products of the company lie, during each phase of the corporate life cycle, in one quadrant of the Boston matrix and the assigning is the same as mentioned by Drews (2008) and recorded above.…”

Section: Resultsmentioning

confidence: 99%

“…Furthermore, Drews (2008) distinguishes investments and operational cash fl ow. The products representing the question marks are connected with large investments, but their generated operational cash fl ow is low.…”

Section: Boston Matrixmentioning

confidence: 99%

“…So the product goes through its life cycle. Drews (2008) To fulfi l this, there is necessary to set some partial targets like follows: 1. to specify the variables of the Boston matrix and to suggest an algorithm to set the intervals for low and high values of these variables, 2. to use this new model by identifying phases of the corporate life cycle by a sample of companies acting on a cyclical and neutral sector and so to verify the correctness of this model. The contribution to the existing applicability of the Boston matrix is based on determination low and high values of both its input quantities, which means, that there will be possible to identify all the individual phases of the corporate life cycle, unequivocally.…”

Section: Sequences Of Quadrants Of the Boston Matrix Describing The Pmentioning

confidence: 99%

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Using the Boston Matrix at Identification of the Corporate Life Cycle Stage

Konečný¹,

Zinecker²

2015

Acta Univ. Agric. Silvic. Mendelianae Brun.

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The main aim of this article is to develop a new model supporting the identifi cation of the particular corporate life stage within the corporate life cycle. This model will be derived from the Boston matrix. The main reason for using this approach as the base for making new model of the corporate life cycle is the fact, that every quadrant of the Boston matrix can be assigned to one phase of the product life cycle and there is supposed, that the phase, in which are most products, determines the phase of the corporate life cycle. For application the Boston matrix by identifi cation phases of the corporate life cycle is necessary to defi ne low and high values of both its variables using some quantities from the model of corporate-and market life cycle by Reiners (2004). So the interval of low and high sales growth is determined by comparing sales of the company and sales of the market and furthermore, there is considered the rate of infl ation to eliminate the impact of price changes. And for determination low and high market shares, there are compared the shares of sales and shares of total assets. A er that, there will be possible to identify all the quadrants and thus all the individual phases unequivocally, which is the basic advantage compared to most existing models of the corporate life cycle. The following aim of this article is to compare the occurrence of individual phases, identifi ed by this modifi ed model, depending on the sector sensitivity to the economic cycle, measured by the coeffi cient of correlation between sales on the market and GDP. There are selected two sectors of the Czech economy, namely one cyclical and one neutral sector. Subsequently there is selected a sample of companies from both these sectors. The data are collected from fi nancial statements of companies and from analytical materials by the Czech Ministry of Industry and Trade and by the Czech Statistical Offi ce. On the basis of this research, there were recorded diff erences especially in the number of companies in the phases of stabilisation and decline, depending on the sector sensitivity to the economic cycle.

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Section: Resultsmentioning

confidence: 99%

Section: Boston Matrixmentioning

confidence: 99%

Section: Sequences Of Quadrants Of the Boston Matrix Describing The Pmentioning

confidence: 99%

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Using the Boston Matrix at Identification of the Corporate Life Cycle Stage

Konečný¹,

Zinecker²

2015

Acta Univ. Agric. Silvic. Mendelianae Brun.

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“…In spite of repeated criticisms (Drews, 2008), the BCG matrix remains one of the most influential theoretical models in marketing science both in textbooks (Kotler andKeller, 2016, Schürmann, 2016) and in research (Gite and Kumar Roy, 2014, Tao andShi, 2016, Suksantilap et al, 2017). In a review paper, Madsen (2017) describes both the enormous impact of the model and its fading popularity in the academic world, emphasising today's practical relevance of the model.…”

Section: Theoretic Background a Bcg Framework Of Connoisseurs And Spementioning

confidence: 99%

What distinguishes Connoisseurs from spenders? A case study of wine in Croatia

Peršurić¹,

Mann²

2019

Ekonomika poljoprivrede

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This paper had a goal to explore the knowledge and spending power, which frequent criteria are for target groups, although they are rarely distinguished in a systematic way. This paper develops motivation for a thorough distinction and reveals differences among connoisseurs and spenders within the Croatian wine market. A theoretical model of the two target groups in a framework around the BCG matrix was developed. For the empirical verification, standardized face-to-face interviews were conducted with 307 Croatian wine consumers. For the sake of knowledge, both self-reported and observed measures were used. Our findings confirm that Connoisseurs emphasize particularly functional characteristics of wine that constitute self-related items such as self-fulfillment and social values, while spenders rather emphasize the gastronomy experience of wine. The difference between connoisseurs and spenders can be translated into marketing strategies that emphasize different product attributes and characteristics of wine at different stages of the product life cycle.

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Portfoliomodelle zur Entscheidungsunterstützung bei sich ausdifferenzierenden Geschäftsmodellen

Jung¹,

Sommer

2019

Mobilität in Zeiten Der Veränderung

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Farewell to the Growth Share Matrix after more than 35 years of usage? A critical examination of the BCG Matrix

Cited by 6 publications

References 18 publications

Using the Boston Matrix at Identification of the Corporate Life Cycle Stage

Using the Boston Matrix at Identification of the Corporate Life Cycle Stage

What distinguishes Connoisseurs from spenders? A case study of wine in Croatia

Portfoliomodelle zur Entscheidungsunterstützung bei sich ausdifferenzierenden Geschäftsmodellen

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