The decision-making method proposed by Boston Consulting Group is BCG matrix method.

BCG matrix method, also known as business unit combination analysis method, was put forward by Boston Consulting Group. This method determines the causes of the problem and formulates various possible solutions, and evaluates the advantages and disadvantages of each solution according to its impact on the enterprise, so as to make the final decision. BCG matrix method is a decision-making method specially designed for multi-service enterprises. This method manages the business portfolio of an enterprise by examining the market share and industry growth rate of each business line relative to other business lines.

Boston Matrix was founded by Bruce Henderson, a famous American management scientist. He believes that the basic factors that generally determine the product structure are: market attraction and enterprise strength, in which market attraction includes the sales growth rate of the whole market, the strength and profit level of competitors; Enterprise strength includes market share, technology and equipment capital utilization ability.

When these two factors interact, there will be four different product types: the first is that both factors are high, the second is that both factors are low, the third is that the sales growth rate is high and the market share is low, and the fourth is that the sales growth rate is low and the market share is high.

Next, I will introduce the advantages and limitations of Boston Matrix: its wide application not only improves the analysis and strategic decision-making ability of managers, but also helps to understand the relationship between various project activities of enterprises and strengthen the communication between business units and enterprise managers; At the same time, this method is also difficult to estimate the balance of two or more businesses at the same time, and it needs to consult a lot of data and analyze it carefully.