bcg-matrix
Concept of the skill
What it is: The BCG Growth-Share Matrix, also called the Boston Matrix or product portfolio matrix, is a portfolio allocation framework. It classifies products, brands, or business units by market growth and relative market share.
Mental model: Define the portfolio unit and its market first. Then plot each unit on two axes: how fast the market is growing and how strong the unit's relative share is. The quadrant label becomes a cash-flow and investment hypothesis, not a final decision.
Why it exists: Agents often recommend investing or divesting from a portfolio without making the allocation logic explicit. This skill forces market definition, metric choice, cash-generation logic, and assumption checks before recommending action.
What it is NOT: It is not Ansoff, SWOT/TOWS, PESTEL, Five Forces, Seven Powers, OKRs, or a valuation model.
Adjacent concepts: corporate portfolio strategy, product portfolio management, resource allocation, relative market share, market attractiveness, cash generation, harvesting, divestment, strategic experimentation.
One-line analogy: BCG maps which portfolio units fund the system, which need funding, which are bets, and which may be absorbing scarce resources.
Common misconception: The quadrant names do not decide the strategy. They classify a portfolio position so evidence, cash economics, and follow-on analysis can decide what to do next.