Read this article to learn about the difference between BCG matrix and DP matrix.
Difference between BCG Matrix and DP Matrix
1. BCG matrix considers market/industry growth rate (that is, only one variable) whereas DPM considers number of variables.
2. BCG matrix is concerned with relative competitive position (which is usually expressed as a business’s market share divided by the market share of the largest competitor in the market) while DP matrix considers business strength—a broadest focus consisting of various factors listed before.
3. 4-cell BCG matrix is very simplistic view as it considers—high and low only. 9 cell DP matrix is certainly a refinement.
4. DP matrix is capable to be seen and modified in various ways and this is not the case with BCG matrix.
5. DP matrix is flexible in the sense that it can incorporate risk situations whereas BCG matrix cannot. This is illustrated by the following diagram. It becomes a combined three-dimensional matrix, portfolio analysis plus risk.