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The term marketing can be defined as the actions that are performed by the business entities and the organizations to promote their brand. Marketing is the process by which the companies try to attract the attention of the customer towards their product or service. (Proctor 2014). Many of the different organizations have started as single product but slowly evolved itself into a multinational company. Managing and providing a number of different products to the customers does not ensure the similarity of the of the product life cycle of different products. The different business organizations operate in a competitive environment which is quite different from each other. The market growth opportunities also differ from each other and every organization formulates special strategies to achieve the set goals and objectives. Portfolio decisions are considered to be the ultimate while formulating the strategies of the organization. A number of different portfolio models are present which provides a clear analysis of the product portfolio models. These are namely;
a. Shell Directional Policy Matrix
b. BCG Matrix
c. GE Matrix/McKinsey Matrix
BCG Matrix or Boston Consulting Group was developed by Mr. Bruce D. Henderson in the beginning of the 1960’s. It is believed to be on the business to analyze the different SMU’s. The framework is concerned with the cash generation and its use in the business.
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