The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic management tool that helps businesses analyze their product or service portfolio based on two key factors: market growth rate and relative market share. The matrix was developed by the Boston Consulting Group in the early 1970s and is widely used for portfolio analysis and strategic decision-making (Annmarie Hanlon, 2022). The BCG Matrix consists of a four-quadrant grid, with each quadrant representing a different category of products or services as given below. Figure: Ansoff Matrix Stars: Products or services in high-growth markets with a high relative market share. Stars have the potential to generate high returns but also require significant investments to sustain their growth. These are typically products with a strong market position in rapidly growing industries (CFI Team, 2023). Question Marks (or Problem Children): Products or services in high-growth markets with a low relative market share. Que
The Ansoff Matrix, also known as the Product/Market Expansion Grid, is a two-by-two framework used by management teams and analysts to plan and evaluate growth initiatives (Kyle Peterdy, 2023). Hence, Ansoff Matrix is a widely used marketing model that evaluates growth opportunities for companies by presenting alternative combinations for new markets, products, and services, offering four strategies which is shown as below (Annmarie Hanlon, 2021). Figure: Ansoff Matrix Each box of the Matrix links to a specific growth strategy. They are; Market Penetration: The concept of increasing sales of existing products into an existing market. Market Development: Focuses on selling existing products into new markets. Product Development: Focuses on introducing new products to an existing market. Diversification: The concept of entering a new market with altogether new products. The Ansoff Matrix provides a framework for businesses to evaluate and choose the most suitable growth strategy