BCG Matrix

By: A Staff Writer

Updated on: Jul 19, 2024

What: Plots a company’s offerings on a chart based on market share and market growth, resulting in four categories: Stars, Question Marks, Cash Cows, and Dogs.

Who: The Boston Consulting Group in the 1970s.

Why: Helps entrepreneurs analyze their product portfolio, make tough decisions on resource allocation, and understand where to invest.

When: Periodically to review your offerings, or when facing significant shifts in your market(s).

How:

1. 1. Calculate market share and growth rate for each business unit or product.
   2. Plot them on the matrix.
   3. Use the categories to guide investment strategies. (Ex: Stars = protect, Dogs = divest).