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Mam Tet Reflection

The BCG Growth-Share Matrix is a strategic tool developed by the Boston Consulting Group to evaluate business units based on market growth and market share. It categorizes products into four quadrants: Stars, Cash Cows, Question Marks, and Dogs, guiding companies on investment and resource allocation decisions. The matrix remains relevant for strategic management, emphasizing the importance of a balanced portfolio for long-term success.

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lopezkenneth929
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16 views1 page

Mam Tet Reflection

The BCG Growth-Share Matrix is a strategic tool developed by the Boston Consulting Group to evaluate business units based on market growth and market share. It categorizes products into four quadrants: Stars, Cash Cows, Question Marks, and Dogs, guiding companies on investment and resource allocation decisions. The matrix remains relevant for strategic management, emphasizing the importance of a balanced portfolio for long-term success.

Uploaded by

lopezkenneth929
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Lopez, Kenneth F.

3D3-BSHM

I.Introduction
The BCG Growth-Share Matrix, developed by the Boston Consulting Group in 1970, is a
strategic tool used by companies to evaluate their business units or product lines. It helps in
making decisions about where to invest, which products to keep, and which to divest. The video
“CG Matrix (Growth-Share) EXPLAINED” by Business to You offers a clear visual and
conceptual explanation of this matrix, making it easier to understand its practical application in
business strategy.

II. Body
The matrix is divided into four quadrants based on two dimensions: market growth rate (Y-axis)
and relative market share (X-axis). Each quadrant represents a category:

• Stars: High market growth and high market share. These are strong performers that
require continuous investment to maintain their lead.
• Cash Cows: Low growth but high market share. They generate steady income and fund
other segments.
• Question Marks: High growth but low market share. These need strategic analysis to
determine if they’re worth investing in or not.
• Dogs: Low growth and low market share. These usually drain resources and are often
recommended for divestment.

The video illustrates these with examples, showing how companies might decide to reinvest in a
Question Mark, protect a Star, milk a Cash Cow, or cut off a Dog. It also emphasizes the matrix’s
value in resource allocation and portfolio balancing.

III. Learning Insights


From the video and reading material, I gained a deeper appreciation of how companies
make investment decisions—not just based on financial performance, but also on market
dynamics. The matrix shows that not all low-performing products are immediately discarded, nor
are high-growth areas always beneficial. Strategic fit and timing matter.It also taught me that a
balanced portfolio (with products in all four quadrants) is ideal. Overreliance on Cash Cows, for
example, might hurt future growth, while too many Question Marks can become financially risky.

IV. Conclusions
The BCG Growth-Share Matrix remains a foundational model in strategic management. It
simplifies complex business decisions by providing a visual framework. The video enhanced my
understanding of how the model works and why it is still relevant today in helping businesses
prioritize actions, allocate resources, and plan for long-term success.

V. References
Business to You. (2020, January 30). CG Matrix (Growth-Share) EXPLAINED | B2U |
Business to You [Video]. YouTube. https://www.youtube.com/watch?v=gNR49lk5dS0&t=12s
Boston Consulting Group. (1970). Growth-Share Matrix (BCG Matrix).

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