STRATEGIC PORTFOLIO TRANSFORMATION USING BOSTON CONSULTING GROUP MATRIX IN ENGINEERING INDUSTRY

Abstract

This study examines the business portfolio of PT Wasa Mitra Engineering using the Boston Consulting Group (BCG) Matrix within the context of digital transformation and energy transition. The research adopts a quantitative descriptive approach based on secondary data derived from company reports, industry trends, and competitor analysis. Two key indicators market growth rate and relative market share are employed to evaluate and classify the firm’s core business units. The findings reveal a transitional portfolio structure, in which industrial electrical services function as Cash Cows, providing stable revenue streams, while smart electrical systems and automation demonstrate strong potential as Stars due to their alignment with Industry 4.0 developments. Renewable energy services are categorized as Question Marks, reflecting high growth potential but limited competitive positioning, whereas fossil-based energy services fall into the Dogs category due to declining market relevance amid sustainability pressures. This study contributes to the strategic management literature by extending the application of the BCG Matrix into industries characterized by simultaneous digital and energy transitions. It highlights the importance of integrating classical portfolio frameworks with contemporary strategic contexts to support adaptive decision-making. The findings offer practical insights for firms in engineering and related sectors to balance short-term financial stability with long-term growth by prioritizing high-potential segments and reallocating resources from declining business units.