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As a strategic analysis model, the four-quadrant analysis method allows companies to use two dimensions to analyze the performance of business and products, helping them better allocate resources. , Problem diagnosis.
The four-quadrant analysis method (also known as the BCG Matrix, Boston Matrix. English: BCG Matrix) is an analysis method proposed by the Boston Consulting Group. The purpose is to assist companies in analyzing the performance of their business and product lines, so as to It helps companies better allocate resources and serves as an analytical tool for brand building and marketing, product management, strategic management and the company's overall business. The four-quadrant analysis method uses relative market share (obtained by dividing the market share of the company's business by the highest market share in the same industry) as the horizontal axis, market growth rate (the year-on-year sales can be used) as the vertical axis, plus The products are divided into four categories based on the respective boundaries of the upper two axes: problem products, celebrity products, cash cattle products and thin dog products.
The four-quadrant analysis method also explains to us the normal life cycle of a product, that is: most products or businesses are initially "problem types" and gradually become "star types" as capital investment increases. If the market growth rate slows down, it will move to the "cash cow" area. Eventually, it will move to the "thin dog" area, thus completing a life cycle.
1. Problem products
2. Star products
3. Cash cattle products
4. Thin dog products
The original purpose of the four-quadrant analysis method was to analyze the performance of business and products, and then allocate resources reasonably. The Boston Consulting Group uses market share and sales growth rate to analyze future product resource allocation methods. In addition, products can also be divided into different types by comparing product data at different latitudes, and corresponding management strategies can be formulated. For example: analyzing the number of consumption and consumption amount of user shopping; analyzing the inventory days and inventory turnover rate of goods in inventory management, etc. (In the actual combat phase 1, through the analysis of Kun Kun, Bo Ge, Yu Ge, Miss Ge Lan and Cai Cai Cai Wait for the fund manager's holding funds to be analyzed, and then classify the funds to select funds that suit you)
The four-quadrant analysis method is mainly divided into two categories in the diagnosis of business problems. The first category is analysis of similar products. Select dimensional indicators with positive and negative meanings (such as conversion rate, satisfaction, etc.), and then analyze the performance of each business under the two indicators to divide the business or product; the second type is to diagnose the differences in the same indicator among each business Performance in the time dimension. For example, when there is a problem with the overall business, such as sales, conversion rate and other indicators deteriorating, you can use the four-quadrant analysis method to analyze the year-on-year or month-on-month performance of each business or product to locate key issues. business or product and improve it. (In the actual combat phase 2, since the overall conversion rate of the APP has declined year-on-year and month-on-month, the key points causing problems have been identified through analysis of each category)
In the actual combat phase 1, through the analysis of Kunkun and Boge , Brother Yu, Sister Grant and Cai Cai and other fund managers conducted an analysis on a certain holding fund, selected the Sharpe ratio indicator to measure the fund's return rate and the maximum drawdown rate indicator to measure the fund's risk, and classified the funds. Here is a supplementary explanation of the meaning of the two key indicators selected by the fund:
Sharpe ratio: Indicates how much excess return is expected to be obtained for each unit of risk taken. The larger the value, the higher the fund's cost performance.
Maximum drawdown: Indicates the decline in the fund's net value from the highest to the lowest. The larger the value, the worse the fund's risk response capability.
As can be seen from the picture above, the red triangle mark is the low-risk and high-yield area. The closer the fund is to this point, it means that the fund has endured lower risks and brought higher returns in the past year. , so we should focus on this type of fund. From the above figure, we can see that Manager Cai Cai’s fund has the highest volatility and a low return rate, so we should choose carefully. Kunkun's fund has performed best overall in the past year. Since the growth of the fund is affected by various aspects such as fund manager operations and national policies, you need to be cautious when selecting bases. This case is for reference only (because this actual data only selected 5 fund data for analysis, and except for Cai Cai, the others were all chosen by me. So the benefits and risks are relatively stable, haha, the focus is on the analysis ideas. In addition, Excel will be more convenient for drawing and debugging, which will not be explained in this article, but everyone should try to use the open source language Python to draw).