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BCG Matrix

The BCG matrix is a tool that categorizes products based on their relative market share and market growth rate. Products are classified as stars, cash cows, dogs, or question marks. Stars have high market share and growth. Cash cows have high share but low growth and generate cash. Dogs have low share and growth and require resources to maintain. Question marks have low share but high growth and their future is unclear. The matrix is used to assess a product portfolio and guide investment and support decisions.
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0% found this document useful (0 votes)
183 views8 pages

BCG Matrix

The BCG matrix is a tool that categorizes products based on their relative market share and market growth rate. Products are classified as stars, cash cows, dogs, or question marks. Stars have high market share and growth. Cash cows have high share but low growth and generate cash. Dogs have low share and growth and require resources to maintain. Question marks have low share but high growth and their future is unclear. The matrix is used to assess a product portfolio and guide investment and support decisions.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

BCG

MATRIX
QUESTION
STARS
MARKS
Star products all These products
have rapid growth prove to be tricky
and dominant ones for product
market share. Relative Market Share managers.

High Low
High

BCG MATRIX

Market Growth Rate


The BCG model assumes that relative market share of a
product is an indicator of its cash generation potential. A
product with a high market share typically has a high cash
return, and it also has a strong brand position relative to
its major competitors. These features are indicators of
future success. Low

DOGS
CASH COWS
Cash cows don’t Products classified as
need the same level dogs always have a
of support as weak market share in
before. a low growth market.
SHARE OF COMPANIES
20121 20221

QUESTION QUESTION
STARS STARS
MARKS MARKS
3% 60% 5% 51%

Growth2

Growth2
CASH COWS DOGS CASH COWS DOGS

BCG MATRIX
13% 24% 9% 35%

Relative Share3 Relative Share3

The BCG model assumes that relative market share of a


product is an indicator of its cash generation potential. A SHARE OF PROFITS
product with a high market share typically has a high cash
2012 1
20221
return, and it also has a strong brand position relative to
its major competitors. These features are indicators of
future success.
QUESTION QUESTION
STARS STARS
MARKS MARKS
6% 34% 22% 29%

Growth2

Growth2
CASH COWS DOGS CASH COWS DOGS
53% 7% 40% 9%

Relative Share3 Relative Share3


BCG MATRIX
High Low

Market Growth Rate


STARS QUESTION MARKS

High
Star products all have rapid These products prove to be tricky
growth and dominant market QUESTION ones for product managers.
STARS
share. MARKS

Relative Market Share

Market Growth Rate


CASH COWS DOGS
Low

Cash cows don’t need the same Products classified as dogs always
level of support as before. CASH COWS DOGS have a weak market share in a
low growth market.

The BCG model assumes that relative market share of a product is an indicator of its cash generation potential. A product with a high market share typically has a high cash return,
and it also has a strong brand position relative to its major competitors. These features are indicators of future success.
BCG MATRIX
Relative Market Share
High Low

STARS QUESTION MARKS


Star products all have rapid growth These products prove to be tricky
and dominant market share. STARS QUESTION ones for product managers.

High
MARKS
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Market Growth Rate


5% 51%

BCG
MATRIX
CASH COWS DOGS
Cash cows don’t need the same level Products classified as dogs always
of support as before. have a weak market share in a low
Low

growth market.

Lorem Ipsum Lorem Ipsum


9% 35%
CASH COWS DOGS

The BCG model assumes that relative market share of a product is an indicator of its cash generation potential. A product with a high market share typically has a high cash return,
and it also has a strong brand position relative to its major competitors. These features are indicators of future success.
BCG MATRIX
Revenue / Profit

QUESTION MARKS STARS CASH COWS DOGS

Introduction Growth Maturity Decline

Time

QUESTION MARKS STARS CASH COWS DOGS


These products prove to be tricky Star products all have rapid growth Cash cows don’t need the same Products classified as dogs
ones for product managers. and dominant market share. level of support as before. always have a weak market
share in a low growth market.
Relative Market Share

BCG MATRIX High Low

The BCG model assumes that relative market share of a product is an indicator of its
cash generation potential. A product with a high market share typically has a high cash
QUESTION

High
return, and it also has a strong brand position relative to its major competitors. These STARS
features are indicators of future success. MARKS

Market Growth Rate


STARS
Star products all have rapid growth and dominant market share.

QUESTION MARKS
Products classified as dogs always have a weak market share in a low growth
market.

Low
CASH COWS CASH COWS DOGS
Cash cows don’t need the same level of support as before.

DOGS
Products classified as dogs always have a weak market share in a low growth
market.

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