Growth-Share Matrix
1. WHAT IS A GROWTH-SHARE MATRIX?
2. HOW TO MAKE A GROWTH-SHARE MATRIX
3. GROWTH-SHARE MATRIX EXAMPLES,
Growth-Share Matrix
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What is a Growth-Share Matrix?
A growth-share matrix, also known as a Boston or BCG growth matrix, creates a visual
assessment of products or investments in terms of relative market share and market
growth rate, Each investment or product is plotted in one of four positions on the matrix.
A product or investment can be considered a star, a question mark, a cash cow, or a
dog.* Dogs - Dogs have low market share and a low growth rate. As their name implies
it's a product or investment with little to no potential.
* Question marks - Question marks describe an investment that is growing fast
but is not necessarily generating a lot of revenue due to low market share. A
question mark may require large sums of investment to keep growing and under
the right circumstance it can become a star, but without growth a question mark
can quickly become a dog
+ Stars - Stars have a high growth rate in a high growth market. They both make
and consume large amounts of capital. As market growth declines and the star
holds onto its market share, it becomes a cash cow that can generate revenue for
future innovation and investment.
+ Cash cows - A cash cow has high market share in a mature, low growth market.
They generate more revenue than the resources they consume. They're often
used to fund new business ventures and help turn question marks into stars and
potential future cash cows.
How to Create a Growth-Share Matrix
+ Create a matrix. Create a two-by-two box grid, Label the diagram with a title,
+ Create categories. Place a star in the upper left box, a cow in the lower left box,
a question mark in the upper right box, and a dog in the lower right box. The star
represents high growth and high market share. The cow denotes low growth and
high market share (j.e., a "cash cow"”). The dog signifies low growth and low
market share. The question mark signifies high growth and low market share.
+ Add labels. Near the bottom left comer of the grid draw an arrow going upwards
and another going to the right. Next to the top left box write "High Growth Rate"
and next to the bottom left box write "Low Growth Rate." Beneath the bottom left
box write "High Growth Rate" and beneath the bottom right write "Low Growth
Rate.”
+ Identify finances. Determine which products or investments fit in to each of the
categories on the matrix and place them where they belong.
+ Draw conclusions. Use this diagram to decide where to focus time, effort, and
investment capital.
Two ways to get started
Use the online edition of SmartDraw on any
computer or tabletStart Now
Download the Windows desktop edition of
SmartDraw
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Growth-Share Matrix Examples
The best way to understand growth-share matrices is to look at some examples of
growth-share matrices
Click on any of these growth-share matrices included in SmartDraw and edit them:
“oat share ate
Growth Share Matrix Template
Growlh-Share Matix
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Growth-Share Matrix Guidelines