Stars – High Growth, High Market Share (high competition).Dogs – Low Growth, Low Market Share (less profitable).Question marks – High Growth, Low Market Share (uncertainty).The BCG growth-share matrix breaks down products into four categories: The BCG matrix has two dimensions: relative market share (indicating profitability, through economies of scale) and market growth rate (indicating market attractiveness). The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits. The Boston Consulting Group (BCG) Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.
It is also referred to as the BCG growth-share matrix. The Boston Consulting Group (BCG) Matrix is a portfolio management tool created in 1970 by Bruce Henderson.
