Key Idea: The BCG Matrix helps businesses analyse their product portfolio using market growth and market share. It is used to decide where to invest, hold or remove products.
[Diagram: bcg-matrix]
📈 Strong positions: **Stars —** invest to grow. **Cash cows —** generate steady profit. **Used to fund other products**.
⚠️ Weak positions: **Question marks —** risky, need investment. **Dogs —** low potential, often removed. **Decision needed — invest or divest**.
Always explain WHY a product fits a category using market share and growth.
Discuss limitations: oversimplified, ignores external factors, hard to measure accurately.
Important: Students describe the matrix but do not apply it to the business.
- Identify the product position
- Explain why it fits the category
- Recommend a strategy
- Evaluate the decision
- Link to business context