Since both criteria are hard to quantify, proxies are used to illustrate them. The BCG matrix, also called the growth-share matrix, helps assess a company’s current product portfolio based on the product life cycle and the experience curve. Structure ideas with a 2x2 Matrix and the Clothing Retailer Marketing case The most known two-by-two matrix is the BCG matrix Provides an effective overview of where to focus first before further analysis.Importance for our business (fraction of the overall revenue).Question: In which business segments should we invest further? A matrix is an ideal tool to synthesize complex ideas into simple options.Īs an example, imagine you need to make an investment decision It is recommended to use matrices (if possible) in case interviews, as it will show the interviewer that you can break down complex ideas and communicate these in a structured manner. Use a 2x2 matrix in your interviews as a visual summary of the findings Hence, criteria need to be carefully selected. The chosen two dimensions are independent of each other. Single options are plotted into the matrix, taking two key decision criteria into account. The matrix is generally divided into four segments, which indicate different strategic actions for each option within the respective segment. It is very popular in consulting because it provides a big picture of options that are MECE. Next article A 2x2 matrix is an elegant instrument to effectively communicate insightsĪ two-by-two matrix is a simple and effective way of presenting information.
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