By assigning each business to one of these categories, senior executives / business leaders of Tesla can take decisions regarding allocation and employment of resources, and business strategy decisions such as entry into new segment, exit from a loss making business, employing more capital to increase market share or profitability etc.Įach of the four quadrants represents a specific combination of relative market share, and growth rate:

Each quadrant represents a certain degree of profitability. The four quadrants / components of BCG matrix / Growth Share matrix are – Questions Marks, Dogs, Cows, and Stars. The BCG matrix / Growth Share matrix comprises four quadrants along two axis – market share and rate of growth. What are the four components / quadrants of BCG matrix / Growth Share matrix? BCG Matrix / Growth Share matrix helps the Tesla to efficiently deploy the resources in various businesses in Auto & Truck Manufacturers industry those are most likely to deliver higher rate of return. How and When to use BCG Matrix / Growth Share Matrix?Īs mentioned earlier in the analysis – BCG matrix is a portfolio management framework so it should be used when an organization is running different businesses in either different markets or different industries. You can contact EMBA Pro for detailed BCG / Growth Share Matrix analysis for Case Studies and Corporations The portfolio composition is a function of the balance between cash flows.… Margins and cash generated are a function of market share.” In the Product Portfolio, 1970, Bruce Henderson, CEO of BCG Matrix, said - “A company should have a portfolio of products with different growth rates and different market shares in Auto & Truck Manufacturers and other associated industries. During its peak of popularity in 1970’s and 1980’s, BCG matrix / Growth Share matrix was used by almost half of the fortune 500 companies. The Growth Share matrix is a business portfolio management framework that helps organization such as Tesla in deciding – How to prioritize different businesses. It was published in BCG in-house magazine called – Perspectives. The growth share matrix was created by BCG founder Bruce Henderson in 1968. believes that BCG matrix / Growth Share matrix is highly efficient strategic tool for large diverse conglomerate. What is BCG / Growth Share Matrix? Introduction to BCG MatrixĪt EMBA Pro, we highly recommend Tesla to use the BCG matrix / growth share matrix for portfolio management as Tesla is managing diverse businesses and multiple products.

Tesla bcg matrix