The BCG matrix classifies products based on their market share and market growth rate. Products are categorized as stars, question marks, cash cows, or dogs. Stars have high market share and growth potential. Question marks have high growth but low market share. Cash cows have high market share but low growth. Dogs have low market share and growth. The model assumes market share indicates a product's cash generation and competitive position.
2. BCG MATRIX
The BCG model assumes that relative market share of a
product is an indicator of its cash generation potential. A
product with a high market share typically has a high cash
return, and it also has a strong brand position relative to
its major competitors. These features are indicators of
future success.
Star products all
have rapid growth
and dominant
market share.
STARS
High Low
Relative Market Share
Market
Growth
Rate
These products
prove to be tricky
ones for product
managers.
QUESTION
MARKS
Cash cows don’t
need the same level
of support as
before.
CASH COWS
Products classified as
dogs always have a
weak market share
in a low growth
market.
DOGS
High
Low
3. SHARE OF COMPANIES
Growth
2
STARS
3%
QUESTION
MARKS
60%
DOGS
24%
CASH COWS
13%
Relative Share3
20121
Growth
2
STARS
5%
QUESTION
MARKS
51%
DOGS
35%
CASH COWS
9%
Relative Share3
20221
SHARE OF PROFITS
Growth
2
STARS
6%
QUESTION
MARKS
34%
DOGS
7%
CASH COWS
53%
Relative Share3
20121
Growth
2
STARS
22%
QUESTION
MARKS
29%
DOGS
9%
CASH COWS
40%
Relative Share3
20221
BCG MATRIX
The BCG model assumes that relative market share of a
product is an indicator of its cash generation potential. A
product with a high market share typically has a high cash
return, and it also has a strong brand position relative to
its major competitors. These features are indicators of
future success.
4. Low
High
STARS
Relative Market Share
Market
Growth
Rate
Market
Growth
Rate
QUESTION
MARKS
CASH COWS DOGS
Star products all have rapid
growth and dominant market
share.
STARS
Cash cows don’t need the same
level of support as before.
CASH COWS
These products prove to be tricky
ones for product managers.
QUESTION MARKS
Products classified as dogs always
have a weak market share in a
low growth market.
DOGS
High
Low
BCG MATRIX
The BCG model assumes that relative market share of a product is an indicator of its cash generation potential. A product with a high market share typically has a high cash return,
and it also has a strong brand position relative to its major competitors. These features are indicators of future success.
5. Low
High
STARS
Relative Market Share
Market
Growth
Rate
QUESTION
MARKS
CASH COWS DOGS
Low
High
BCG
MATRIX
Star products all have rapid growth
and dominant market share.
STARS
Lorem Ipsum
5%
Cash cows don’t need the same level
of support as before.
CASH COWS
Lorem Ipsum
9%
These products prove to be tricky
ones for product managers.
QUESTION MARKS
Lorem Ipsum
51%
Products classified as dogs always
have a weak market share in a low
growth market.
DOGS
Lorem Ipsum
35%
BCG MATRIX
The BCG model assumes that relative market share of a product is an indicator of its cash generation potential. A product with a high market share typically has a high cash return,
and it also has a strong brand position relative to its major competitors. These features are indicators of future success.
6. Revenue
/
Profit
Time
Introduction Growth Maturity Decline
QUESTION MARKS STARS CASH COWS DOGS
These products prove to be tricky
ones for product managers.
QUESTION MARKS
Star products all have rapid growth
and dominant market share.
STARS
Products classified as dogs
always have a weak market
share in a low growth market.
DOGS
Cash cows don’t need the same
level of support as before.
CASH COWS
BCG MATRIX
7. Low
High
STARS
High
Low
Relative Market Share
Market
Growth
Rate
QUESTION
MARKS
CASH COWS DOGS
BCG MATRIX
The BCG model assumes that relative market share of a product is an indicator of its
cash generation potential. A product with a high market share typically has a high cash
return, and it also has a strong brand position relative to its major competitors. These
features are indicators of future success.
Star products all have rapid growth and dominant market share.
STARS
Products classified as dogs always have a weak market share in a low growth
market.
QUESTION MARKS
Cash cows don’t need the same level of support as before.
CASH COWS
Products classified as dogs always have a weak market share in a low growth
market.
DOGS