Rule-Based BCG Matrix for Product Portfolio Analysis

Abstract

Product portfolio analysis is used for analyzing company products’ strategic market position, in order to decide which products should receive more or less investment. The Boston Consulting Group (BCG) growth-share matrix is the best known approach for product portfolio analysis. It is a strategic tool for identifying products’ strategic market positions and formulating resources allocation strategies. However, traditional BCG matrix is a static historic analysis, which different time frames are not considered. Thus, the main purpose of this study was to propose a new BCG method, which is a dynamic trend analysis method and different time frames are considered for product portfolio analysis. A numerical case study was conducted to demonstrate that the proposed BCG method has achieved the objectives of the study for company products’ portfolio analysis. First, the rule-based BCG method has contributed a new vague set based data collection method. Second, the rule-based BCG method has contributed a new application for identifying company products’ strategic market positions and resources allocation strategy formulation.