What strategic similarity exists between the Question Marks of the BCG Matrix and the Diversification strategy in Ansoff s Matrix?
Strategic Advantage Profile (SAP) shows the strength and weakness of an organisation. Preparation of SAP is very similar to ETOP analysis. [ The five functional areas in most organisations are production or operation, finance or accounting, marketing or distribution, human
resource and corporate planning, and research and development. These functional areas are listed to identify their
relative strengths and weaknesses in SAP. Very similar to the ETOP analysis, positive, neutral, and negative signs are denoted and brief description is written in SAP profile. Each functional area is very broad and has many constituents.
1 BCG portfolio matrix
The BCG matrix is a portfolio management tool used in product life cycle. BCG matrix is often used to highlight the products which get more funding and attention within the company. During a product’s life cycle, it is categorised into one of four types for the purpose of funding decisions. Figure below depicts the BCG matrix.
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