These have the potential to become Cash Cow s in the future.īCG’s revisiting of the BCG Growth Matrix – a 2014 article that considers the ongoing relevance of this framework.Ĭritical evaluation of the value of the BCG matrix from a 2017 academic paper by Dag Oivind Madsen. These are product with great potential as they have high market share in a rapidly growing market. Therefore they require continuing support in the form of marketing and sales resources. Products selling into low market growth sectors but with a high market share are called Cash Cows and generally provide a steady and profitable revenue stream. Those with low market share in a growing market are tagged as Question Marks with management needing to decide whether to allocate further resources to the product or cease production. Products with low market share in low growth markets are classified as Dogs and may be discontinued or repositioned if management feels the situation is unlikely to change. By combining these two variables into a matrix, a. Using a simple 4 quadrant grid, products are placed according to their potential for sales growth and the external market’s potential for overall growth. BCG Matrix (also known as the Boston Consulting Group analysis, the Growth-Share matrix, the Boston Box or Product Portfolio matrix) is a tool used in corporate strategy to analyse business units or product lines based on two variables: relative market share and the market growth rate. The value of the BCG matrix lies in its ability to help businesses segment their product portfolios in terms of priority for continuing investment. Its creators were BCG consultants, Alan Zakan and his colleagues.Īlthough more sophisticated product portfolio evaluation tools have emerged since, it is still widely used in business and taught in business schools around the world. The BCG Growth Matrix originated within the Boston Consulting Group in the 1960s.

Bcg growth matrix