Since both criteria are rather hard to quantify, proxy values are used to illustrate these two dimensions. How does the BCG matrix work in detail? The placement of products on the grid is done by investigating two dimensions, which are the axes of the grid: the product life cycle and the experience curve. The BCG matrix assesses the company’s product portfolio by placing each product, division or SBU (strategic business unit) on a 2×2 grid. But how does the BCG matrix work? How does the BCG matrix work? As the name suggests, the BCG matrix has been developed by the Boston Consulting Group, and it has become a very popular tool to assess a company’s portfolio and derive strategic investment decisions. Based on this assessment, the Boston matrix helps in the long-term strategic planning of the company’s portfolio, as it indicates where to invest, to discontinue or develop products. The BCG matrix, also known as the Boston growth-share matrix, is a tool to assess a company’s current product portfolio.
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