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Sir,
i want to ask BCG matrix should be used to analyse products?
as Johnsons and Scholes advise that BCG should be used to analyse SBU’s not Products?What are other important models to analyse products, except Product life cycle?
and please Explain the words “DIVEST and HARVEST” from BCG matrix context.
any reffer me any Questions that Analyse Products
thank you
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From a performance management context, the BCG explores the use of a ‘portfolio’ of SBU’s to further the performance of the entity. On the same light you can use ‘products’. For example, using Apple, before the tablet, they had the ‘iphone’ as the cash cow, the ‘ipod’ that is probably transitioning from cash cow to dog and ‘macintosh’ as their dog (a niche). This paved way to invest in R&D and the problem child was the ipad, that then went to take the position as the rising star and now gone to station as a cash cow.
So using this model you can say that Apple does not have an optimum portfolio, although it is healthy, given that they have too many cash cows.
So i do not see why you cannot use BCG to analyse a portfolio of products.
If the question is how to achieve growth with products, i would answer it using Ansoff Matrix.
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