How do you align BCG matrix with other strategic frameworks?

1 SWOT analysis

SWOT analysis is a framework that helps you identify the strengths, weaknesses, opportunities, and threats of your business or product. It can help you assess the internal and external factors that affect your performance and competitiveness. You can use the BCG matrix to inform your SWOT analysis by mapping the four categories to the four quadrants. For example, stars can be seen as strengths, as they have high market share and growth potential. Cash cows can be seen as opportunities, as they generate steady cash flow that can be invested in other areas. Question marks can be seen as weaknesses, as they require more resources and attention to grow or maintain their position. Dogs can be seen as threats, as they have low market share and growth and may be losing money.

2 Porter's five forces

Porter's five forces is a framework that helps you analyze the competitive intensity and attractiveness of an industry or market. It considers five forces that shape the profitability and rivalry of a business: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of competitive rivalry. You can use the BCG matrix to inform your Porter's five forces analysis by examining how each category faces these forces and how they affect their profitability and growth. For example, stars may face high threats of new entrants and substitutes, as they operate in attractive and dynamic markets. Cash cows may face low threats of new entrants and substitutes, as they have established loyal customers and strong brands. Question marks may face high bargaining power of buyers and suppliers, as they have low market share and low differentiation. Dogs may face high intensity of competitive rivalry, as they compete with other low-performing products or businesses.

3 Ansoff's matrix

Ansoff's matrix is a framework that helps you identify the growth strategies for your business or product. It considers four options based on the existing or new markets and products: market penetration, market development, product development, and diversification. You can use the BCG matrix to inform your Ansoff's matrix analysis by evaluating the potential and risk of each option for each category. For example, stars may pursue market penetration or market development strategies, as they have high market share and growth potential and can leverage their competitive advantage. Cash cows may pursue product development or diversification strategies, as they have low market growth and can use their cash flow to innovate or enter new markets. Question marks may pursue market penetration or product development strategies, as they have low market share and high market growth and can increase their market share or differentiate their products. Dogs may pursue diversification or divestment strategies, as they have low market share and low market growth and can seek new opportunities or exit the market.