BCG Matrix

In this tutorial you will learn how to create BCG Matrix in Excel. BCG Matix is a chart which show you potential of your company’s products. BCG stands for Boston Consulting Group – this company created this chart for the first time.

Preparing Data to BCG Matrix

First you need some data. You need market growthmarket share for all of your products and relative market share.

To get relative market share just divide market share of your product and market share of your largest competitor.

BCG Matrix Data Table

Inserting BCG Matrix

To insert BCG Matrix in Excel select columns A, B and C for all products. Market Growth will be values of Y axis. Market Share will be the bubble in the chart.

BCG Matrix Data

Go to Ribbon > Insert > Other Charts and click Bubble Chart

Bubble Chart

Bubble Chart inserted

Excel Bubble Chart

 

Now change X-axis values. Right-click X-axis values and go to Select Data.

Bubble Chart Select Data

Click Edit to change source of data.

Bubble Chart Edit Source Data

You have to change series X values.

Bubble Chart Edit Series

Select Relative Market Share values. It is column E in this example.

Bubble Chart Relative Market Share

Your BCG Matrix chart is a bit changed. Now, all values are correct.

Bubble Chart Not Ready

Let’s continue formatting of X Axis. Right-click X-axis and go to Format Axis. Click Values in reverse Order and change Axis Value to 1 (it depends on your market!).

Bubble Chart Format Axis

Your Bubble Chart starts to be similar to BCG Matrix.

BCG Matrix beta

Click the chart. Go to Ribbon > Layout tab. Click:

  • Gridlines > Primary Horizontal Gridlines > None
  • Legend > None
  • Add both Axis Titles

Right-click Y-axis and go to Format Axis. Change Axis value to 0,1 (also depends on yor market!)

BCG Matrix Axis Value

BCG Matrix is almost ready but needs some formatting

BCG Matrix almost ready

Do some formatting:

  • Go to Ribbon > Insert > Text Box and insert box in the chart to create some labels
  • Change titles of chart and axes

BCG Matrix is ready.

Example of BCG Matrix in Excel

This is a portfolio of your products:

  • Product3 is your star. You will earn money on this product.
  • Product2 is a cash cow. This is product which is giving you money now.
  • Product4 is a qustion mark. You should invest money in this product.
  • Product1 and Product5 are dogs. Just don’t sell them any more.

I prepared template of BCG Matrix. You can download it here for free.