The Growth-Share Matrix (BCG Matrix – Boston Consulting Group) is a portfolio planning method that evaluates a company’s strategic business units (SBUs) in terms of their market growth rate (vertical axis) and relative market share (horizontal axis).
SBUs are classified into one of four categories: 1) Stars (high growth, high share – require investment); 2) Cash Cows (low growth, high share – generate cash); 3) Question Marks (high growth, low share – uncertain future); or 4) Dogs (low growth, low share – low profitability). The matrix helps management decide where to invest, maintain, harvest, or eliminate certain SBUs.
