BCG Growth-Share Matrix
Analyze your business portfolio and make strategic decisions
Understanding the BCG Matrix
What is BCG Matrix?
The BCG Growth-Share Matrix is a strategic planning tool developed by Boston Consulting Group in 1970. It helps organizations analyze their business units or product lines based on two factors: market growth rate and relative market share.
Who Uses It?
- Corporate strategists and executives
- Product portfolio managers
- Investment analysts
- Business development teams
- Marketing strategists
Key Benefits
- Visual portfolio analysis
- Resource allocation optimization
- Strategic investment decisions
- Product lifecycle management
- Market position assessment
What Can It Reveal?
The matrix helps identify:
- Future high-potential products (Stars)
- Current cash generators (Cash Cows)
- Investment opportunities (Question Marks)
- Underperforming assets (Dogs)
Advantages & Limitations
Advantages
- Simple and intuitive framework
- Clear strategic implications
- Helps in resource allocation
- Facilitates portfolio discussions
Limitations
- Oversimplifies complex markets
- Focuses only on two dimensions
- May not suit all industries
- Requires regular updates
Matrix Visualization
CS
ES
MA
LS
AI
Market Growth Rate (%)
Relative Market Share
High
Low
Low
High
Legend
Stars - High growth, high share
Cash Cows - Low growth, high share
Question Marks - High growth, low share
Dogs - Low growth, low share
Circle size represents revenue volume
Quick Tips
• Stars: Invest to maintain market position
• Cash Cows: Harvest cash to fund other units
• Question Marks: Selective investment or divestiture
• Dogs: Consider divestiture or turnaround
Portfolio Summary
Total Revenue
$1.82B
Business Units
5
Avg Growth Rate
18.4%
Portfolio Balance
Healthy