Abstract
The BCG Matrix was introduced almost 50 years ago, and is today considered one of the most iconic strategic planning techniques. Using management fashion theory as a theoretical lens, this paper examines the historical rise, fall and persistence of the BCG Matrix. The analysis highlights the role played by fashion-setting actors (e.g., consultants, business schools and business media) in the rise of the BCG Matrix. However, over time, portfolio planning models such as the BCG Matrix were attacked and discredited by a host of different actors, and gradually fell out of favor. Even though the BCG Matrix has fallen from grace, it is still alive and has left an imprint on management education and practice. Despite being largely discredited in academic circles, many practitioners still view it as an important corporate portfolio planning technique.
Highlights
Using management fashion theory as a theoretical lens, this paper examines the historical rise, fall and persistence of the Boston Consulting Group (BCG) Matrix
The analysis highlights the role played by fashion-setting actors in the rise of the BCG Matrix
Even though the BCG Matrix has fallen from grace, it is still alive and has left an imprint on management education and practice
Summary
Using the framework and simplicity of a 2x2 matrix, the BCG Matrix identifies socalled stars, question marks, cash cows and dogs. The BCG Matrix is a highly prescriptive management technique, offering clear and memorable recommendations (e.g., milk the cows, invest in the stars, divest the dogs and solve the question marks). The BCG Matrix has been around for a long time It was introduced by Boston Consulting Group with much fanfare almost half a century ago, and has left a long-lasting imprint on the fields of marketing and strategy. Portfolio matrices are considered one of the “ten big ideas” in strategic thinking (Allio, 2006), and the BCG Matrix is considered one of the “50 management ideas you really need to know” (Russell-Walling, 2008)
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