The BCG Matrix

The BCG (Boston Consulting Group) Matrix helps businesses evaluate their product lines based on market share and market growth. It offers a visual framework to allocate resources effectively.

• Stars: High growth, high share – products with strong potential. Invest to sustain growth.

• Cash Cows: Low growth, high share – mature products that generate steady revenue. Use them to fund other segments.

• Question Marks: High growth, low share – require heavy investment to grow or should be divested.

• Dogs: Low growth, low share – underperforming and often best discontinued.

This model is widely applied in strategic management, especially for diversification and resource planning.