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 high ; QUESTION MARKS STARS remainder 0 $e irestea Low Market Share High Market Share & & High Market Growth High Market Growth The opportunities no ene knows you're well-established, and whal t9 do with these are fantestic ‘These opportunities need serious opportunites z thought as to whether increased s investment fs warranted ive z aS 2 3 DOGS CASH COWS liquidate ie Low Market Share High Market Share & & Low Market Growth Low Market Growth ‘your market presence is weak. you're well-established Is going to be difficult to make However, the market isn't a profit. growing and your opportunities are limited. low lo Market Shae > high 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 tabletStart Now Download the Windows desktop edition of SmartDraw Download 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 coe Growth-Share Matrix Guidelines