Boston Consulting Matrix
Boston Consulting Matrix is a worldwide management consulting firm with agencies in forty-two states. It is documented as one of the utmost prominent management consulting companies in the world. BCM has become beneficial in the growth-share matrix where a simple chart is designed to succor large companies in determining how to allot cash amid their business components. The experience curve is also useful since it exemplifies that the further a task is accomplished, the lower the cost. Relatively low cost of tasks is a very influential tactical advantage; therefore, firms should exploit the learning and familiarity effects (Porter, 2000).
The advantage of BCM is that it is easy to understand. Additionally, it helps the managers of various firms determine balance in the business components. BCM also gives the foundation for prospect decision making as well as implementations. With BCM models, huge companies operate effectively having volume and experience knowledge. However, Boston Consulting Matrix regularly ignores the effects of synergy amid business units (Porter, 2000). They mostly concentrate on the high market share, which is not the sole achievement factor. BCM also experiences challenges in acquiring data on the market share besides market growth. On the other hand, BCM does not perfectly define the components of a market as well as neglects minor competitors with rapid market shares.
I would use Boston Consulting Matrix to manage a firm as well as implement the way forward. This is by identifying the potential market and investing in the area. This would help increase the sales as well as expand the firm operations. The balancing of the newly formed business units would also rely on Boston Consulting Matrix for a good business portfolio.