What is a BCG Matrix?

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Boston Consulting Group (BCG Growth Share Matrix)

*Stars – High growth, high share business or products. Need heavy investment. Will turn into cash cows

*Cash Cows – Low growth, high share business or products. Need less investment, but produces lot of cash.

*Question Marks – Low share. Needs lot of cash.

*Dogs – Low growth, low share business and products. May generate cash but do not promise large sources of cash.

A tool by which management identifies and evaluates the various businesses that make up the company.

The company will put strong resources into more profitable areas of business.

An SBU is a unit of the company that has a separate mission and objectives
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BCG matrix has been developed to analyze products and market share and market growth. This growth-share matrix for the classification of products in cash cows(little capital and high returns), rising stars, and question marks is the BCG matrix.