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What is BCG Matrix?
• BCG Matrix is often used to prioritize which products within the company products mix
get more funding and attention.
• It has 2 dimensions : Market share & Market Growth.
• Consisting of four categories :
 Star.
Cashcows.
Dogs.
Question Mark.
BCG
Matrix
Star
Cash
cows
Dogs
Question
Mark
Assumptions of BCG Matrix
• This matrix assumes that the larger market share in a growth market
leads to profitability.
• An effort to obtain large market share in a slowly growing market requires
too much cash.
• The higher the growth rate, easier to gain market share.
• Market share can be gained by investment in marketing.
Question mark
Low market share
and High market
growth
Stars
High market share
and high market
growth
Dogs
Low market share
and low market
growth
Cash cows
High market share
and Low market
growth
High
High
Low
Low
MarketGrowth
Market Share
Introduction Growth Maturity Decline
(High Growth, Low Market Share)
• Most business start of as question marks.
• They will absorb great amount of cash if the
market share remains unchanged (low)
• Question marks have potential to
become star & evenly cash cow but can
also become dog.
• Investment should be high for question
marks.
(High Growth, High Market Share)
• Stars are leader in business.
• They also require heavy investment to
maintain it’s large market share.
• It leads to large amount of cash
consumption & cash generation.
• Attempts should be made to hold
the market share otherwise the star
will became a cash cow.
(Low Growth, High Market Share)
• They are foundation of the company & often the
star of yesterday.
• They generate more cash than required.
• They extract the profits by investing as little cash
as possible.
• They are located in an industry that is mature not
growing or declining
(Low Growth, Low Market Share)
• Dogs are the cash traps.
• Dogs do not have potential to bring High cost –
Low quality.
• Business is situated at a declining stage.
MarketGrowthRate
CASHCOWSTARS
DOGQUESTIONMARK
Relative Market Share
Conclusion
• Helps to asses the profile of the product.
• It increase the cash demand of the product.
• It helps in resource allocation decisions.
• It develop the cycle of the product.
• Though BCG matrix has its limitation it is one of the most famous & simple portfolio planning
matrix, used by large companies having multi-products.

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BCG Matrix

  • 1.
  • 2. What is BCG Matrix? • BCG Matrix is often used to prioritize which products within the company products mix get more funding and attention. • It has 2 dimensions : Market share & Market Growth. • Consisting of four categories :  Star. Cashcows. Dogs. Question Mark. BCG Matrix Star Cash cows Dogs Question Mark
  • 3. Assumptions of BCG Matrix • This matrix assumes that the larger market share in a growth market leads to profitability. • An effort to obtain large market share in a slowly growing market requires too much cash. • The higher the growth rate, easier to gain market share. • Market share can be gained by investment in marketing.
  • 4.
  • 5. Question mark Low market share and High market growth Stars High market share and high market growth Dogs Low market share and low market growth Cash cows High market share and Low market growth High High Low Low MarketGrowth Market Share
  • 7. (High Growth, Low Market Share) • Most business start of as question marks. • They will absorb great amount of cash if the market share remains unchanged (low) • Question marks have potential to become star & evenly cash cow but can also become dog. • Investment should be high for question marks.
  • 8. (High Growth, High Market Share) • Stars are leader in business. • They also require heavy investment to maintain it’s large market share. • It leads to large amount of cash consumption & cash generation. • Attempts should be made to hold the market share otherwise the star will became a cash cow.
  • 9. (Low Growth, High Market Share) • They are foundation of the company & often the star of yesterday. • They generate more cash than required. • They extract the profits by investing as little cash as possible. • They are located in an industry that is mature not growing or declining
  • 10. (Low Growth, Low Market Share) • Dogs are the cash traps. • Dogs do not have potential to bring High cost – Low quality. • Business is situated at a declining stage.
  • 12. Conclusion • Helps to asses the profile of the product. • It increase the cash demand of the product. • It helps in resource allocation decisions. • It develop the cycle of the product. • Though BCG matrix has its limitation it is one of the most famous & simple portfolio planning matrix, used by large companies having multi-products.