bcg matrix of microsoft company background

Now this is the quadrant that's labeled low growth potential. If we look now at each of the quadrants and what they're labeled, let's start with the one on the lower right. The growth potential is how well it has the potential to perform in the future. That's how well the business is performing today. On the horizontal axis, we have the current market share of the business. So on the vertical axis we see we can have either high growth potential for a business, or low growth potential for a business. They mean a particular product line or service line, and a company is assumed to have multiple businesses in its portfolio. Now it's important to understand that by a business here they mean a sub part of a company's activities. You can see on the vertical axis they have the growth potential of a business. We'll take a look here at the growth share matrix. The first of these two big ideas is called the growth share matrix, or sometimes it's simply called the BCG matrix, named after the consulting firm that promoted it and invented it.

We see BCG developing two ideas, two big ideas that were considered killer apps of the strategy world. And so after the set of ideas that we've been talking about in lesson two, we see the rise of the BCG era. But there is a rough succession of ideas, that as one set of ideas runs out of steam, the other gains prominence.

There are not clean breaks between them, but they overlap. I should note that these eras that we're talking about are not discrete. BCG stands for Boston Consulting Group, and Boston Consulting Group was indeed the star of this particular set of ideas. We come now to what might be called the BCG era. Prepare for the Capstone Project for the Strategic Management and Innovation Specialization View Syllabus

Point out how doing strategy has changed because of advancing technology and globalization Recognize and avoid the old, tired ideas about strategy that are still out there, so you can adopt fresher, better ideas Explain why 'doing' strategy is considered 'the high point of managerial activity' (Mintzberg) In this course - the first of a three-course specialization tailored specifically for the age of creativity and innovation - you will gear up for the challenges of strategy formulation and implementation in a 21st century business.Īfter taking the course, you'll be able to: Today, business value and competitive advantage arise more often from consumer perceptions of what is 'cool' than from physical assets or economies of scale. This course prepares you to think strategically in an age when companies like Apple, Google, and Microsoft have become more valuable (in market cap terms) than companies like Exxon. What used to work doesn't anymore - not necessarily. The world of business strategy is in transition.

Bcg matrix of microsoft company background