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.
The BCG matrix classifies products by relative market share and market growth.
🔒 Interactive diagram
Explore the labelled diagram, charts and maps for this topic in study mode.
Core structure (memorise)
- Stars — high growth, high market share
- Cash cows — low growth, high market share
- Question marks — high growth, low share
- Dogs — low growth, low share
📈 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**.
Strategy logic
- Use cash cows to fund stars
- Turn question marks into stars
- Remove or reposition dogs
- Balance portfolio risk
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