Precise strategic management is essential for businesses to keep a competitive edge in the quickly evolving business environment. As the most powerful instrument in strategic management, the BCG matrix may assist businesses in minimizing risks and allocating resources as efficiently as possible. Simultaneously, the swift advancement of AI technology is changing how businesses make decisions, with AI progressively evolving from a typical supporting function to a significant contributor to strategic decision management. Boardmix, a free BCG matrix AI generator, no longer relies solely on managers' subjective judgments but instead provides objective, data-driven support. When the classic BCG Matrix is combined with cutting-edge AI technology, what breakthroughs and innovations will it bring to corporate strategic management? The purpose of this blog is how to use AI BCG matrix in strategic management step by step.
What is BCG Matrix in Strategic Management?
The BCG matrix is a common strategic management tool for analyzing a company's product line or business. Based on relative market share and market growth rate, it separates companies or goods into four quadrants, each of which represents a distinct strategy and course of action:
- Stars: High market growth rate and high market share.
- Cash cow: Low market growth rate, but high market share.
- Question mark: High market growth rate, but low market share.
- Dog: Both the market growth rate and market share are low.
The BCG matrix plays a key role in strategic management; its essence is a strategic trade-off tool that guides companies in making rational decisions between "what to do" and "what not to do," rather than pursuing "full business coverage." By using the BCG matrix, companies can make informed decisions about which products to prioritize for development and which to gradually phase out. This strategic approach helps optimize the product portfolio, ensuring that resources are allocated to the most promising and successful opportunities.
How to Use AI BCG Matrix in Strategic Management Effectively？
With the help of the AI BCG Matrix, not only is the data processing and plotting process simplified, but it can also provide strategic recommendations. Here are the detailed steps to teach you how to create a BCG Matrix in Boardmix.
Step 1: Login to Boardmix
You can create a free account by going to Boardmix. The online whiteboard platform can then be accessed by logging in.
Step 2: Start a New White Board
Now click “Start from scratch” to start your experience. You can name your board based on your strategic goals, and add any collaborators that may be needed.
Step 3: Get the Business's Information Ready
Two key indications are used in the BCG matrix:
- Relative Market Share
- Market Growth Rate
For any product, business line, or brand, you must have the following information ready:
- Comparison of one's own market share with that of the biggest industry competitor
- Annual growth data or industry trend report
✨Advice: AI analysis is more trustworthy when the data is more correct.
Step 4: Input Data into the AI System
In the bottom right corner, find the Boardmix AI assistant, select the "BCG Matrix Generator" module, and then input the prepared information into the system. For example:
- Product A: 35% growth rate , 1.9x market share
- Product B: 8% growth rate, 1.8x market share
- Product C: 28% growth rate, 0.4x market share
- Product D: 5% growth rate, 0.3x market share
Step 5: Visualize AI BCG Matrix
After entering the data, click generate, and Boardmix AI will automatically categorize the product data into four quadrants: Stars, Cash Cows, Question Marks, Dogs.
Step 6: Share with Team and Adjust
Click the online collaboration feature in the upper right corner of the whiteboard to share the results with team members, making it easy to add comments, adjust coordinates (if other members have more accurate business judgments), and export it as a report or PowerPoint for strategic meetings. Additionally, you can integrate AI SMART Goal or AI SWOT analysis to complete a comprehensive strategic plan.
Case Study 1: BCG Matrix for a SaaS Product Portfolio
After understanding how to create a BCG matrix, the next two real cases will help you understand how to use AI BCG matrix in strategic management.
A certain SaaS startup has launched 8 SaaS products over the past five years. Although some products have gained a certain level of user recognition in niche markets, many others have received lukewarm responses, leading to increased profit pressure on the company. In order to optimize the product portfolio, the company decided to introduce an analysis method that combines AI with the BCG matrix to strategically adjust the existing product line.
Case Study 2: Applying BCG Matrix for Strategic Retail Brand Decisions
ZARA's expansion into the Indian market is a typical case of a retail brand's star market. High scale and growth: The Indian fashion retail market exceeds $80 billion, with an annual online penetration growth of 25%. And the companies have a strong competitive position: ZARA collaborates with local Indian influencers, and its parent company Inditex already has a mature production network in Southeast Asia.
Why Use AI BCG Matrix in Strategic Management with Boardmix?
🎉Automated, visual decision analysis.
🎉Real-time data-driven, non-static templates.
🎉Save manpower and reduce the risk of misjudgment.
🎉Usage scezarios linked with modules like SWOT analysis and SMART goals.
Botton Line
In addition to providing a plethora of BCG matrix templates, Boardmix lets you create customized strategic management plans that facilitate real-time collaboration. The potent combination of Boardmix AI + BCG Matrix, which eliminates the need for intricate technological obstacles, is even more impressive. Even non-professionals may utilize the AI BCG matrix with ease thanks to its user-friendly visual interface and automatic analytical method. Try this BCG Matrix AI generator for free right now!
