![]() The y-axis depicts market growth rate, while the x-axis reflects relative market share.Ĭompanies choose where resources should be deployed to produce the most value or where to let loose and minimize losses by categorizing their company offerings into one of these four categories. ![]() The BCG matrix does this by putting a company’s products or SBUs on a four-square matrix. The Boston Consulting Group’s growth-share matrix (also known as the BCG matrix) is a business tool that analyses a company’s product portfolio or SBUs (strategic business units) to assist them to determine where to spend, where to cease, and which items to develop further. While the organization has numerous techniques and tools at its disposal to accomplish this aim, the BCG matrix, established by the Boston Consulting Group, is widely regarded as the gold standard for identifying cash cows, stars, question marks, and dogs.īut what exactly is the BCG matrix, and what do these acronyms imply? This method enables the organization to better deploy its resources in order to run more efficiently. ![]() ![]() A corporation with a large portfolio must evaluate its product lines on a regular basis to determine which are lucrative, which are losing money, and which require improvement.
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