Assumptions underlying the Product Portfolio theoryĪccording to The Product Portfolio theory, it’s fundamental to look at cash flows to build up a successful portfolio, and this is based on four primary rules: The idea was that determine the share of cash to allocate for each product, also based on how much future cash potential each product had. The BCG became independent by the end of the 1970s, and by then, Bruce Henderson had come up with The Product Portfolio (aka BCG Matrix or growth-share matrix). Henderson, the American businessman, founded the Boston Consulting Group (BCG) in 1963 as part of a bank, The Boston Safe Deposit and Trust Company. It all started back in the 1970s, when Bruce D. What is the effectiveness of BCG model?.What are the 4 elements of a BCG Matrix?.Assumptions underlying the Product Portfolio theory.Digital Business Models Podcast by FourWeekMBA.
