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Constructing and applying the BCG matrix

IB Business Management • Unit 6

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✏️ How to draw a BCG matrix

  • Draw a 2×2 grid
  • Label the x-axis: Market share (high on left, low on right)
  • Label the y-axis: Market growth (high on top, low on bottom)
  • Label the four quadrants: Stars (top-left), Question Marks (top-right), Cash Cows (bottom-left), Dogs (bottom-right)
  • Place each product in the correct quadrant based on the case study data
Common mistake: Getting the axes wrong! Market share is horizontal, market growth is vertical. High share is on the LEFT.

🏆 What examiners look for

BCG construction questions are typically worth 4 marks.

  • [2 marks] Correctly labelled matrix (axes and quadrant names)
  • [1 mark] First product correctly classified
  • [1 mark] Second product correctly classified
You MUST use the data from the case study to justify your classification. Don't just guess — explain why each product belongs in its quadrant.

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💡 Using BCG for recommendations

  • Star products → recommend continued investment and marketing support
  • Cash cows → recommend maintaining current approach, use profits to fund growth
  • Question marks → recommend careful evaluation — invest if potential is high, divest if not
  • Dogs → recommend discontinuing or repositioning unless there's a strategic reason to keep them
Exam tip: In 10-mark questions, use BCG classifications to support your recommendation — 'Product X is a Star and should receive priority investment...'

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