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BCG Matrix: Strategic Planning Tool

The BCG matrix is a tool used to evaluate a company's portfolio of business units by categorizing products in terms of their relative market share and market growth. It divides products into four categories: stars, which have high market share in high-growth markets; question marks, which have low market share but are in high-growth markets; cash cows, which have high market share in low-growth markets; and dogs, which have low market share in low-growth markets. The matrix helps companies strategically allocate resources by identifying which products they should invest in, divest, harvest, or discontinue.

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Abdullah Hameed
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98 views1 page

BCG Matrix: Strategic Planning Tool

The BCG matrix is a tool used to evaluate a company's portfolio of business units by categorizing products in terms of their relative market share and market growth. It divides products into four categories: stars, which have high market share in high-growth markets; question marks, which have low market share but are in high-growth markets; cash cows, which have high market share in low-growth markets; and dogs, which have low market share in low-growth markets. The matrix helps companies strategically allocate resources by identifying which products they should invest in, divest, harvest, or discontinue.

Uploaded by

Abdullah Hameed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

BCG Matrix:

BCG stands for “Boston Consulting group’s

product portfolio” matrix.

• It is used to measure product and services position.

• It helps us to design long-term strategic planning,

• It helps a business in predicting growth opportunities

by considering the whole production rate of products

to decide where to invest, to diverse or develop

product or to retrench.

• It’s also known as the “Growth/Share Matrix”.

Working:
The Matrix is divided into 4 quadrants on the basis of

market growth and relative market share. It is based on two dimensions:

1. Market growth

2. Market share

Stars Question mark


• Financial services • Leather jackets, woven sweaters
• Men’s wear, shoes, trousers,
jeans, shirts, tops.
• Ethnic by outfitters

Cash cow Dog


• Knit wear bags, • Do not exit
• Supplier management service

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