Market Share-Growth Matrix

The Market Share-Growth Matrix, also known as the BCG Matrix, helps businesses analyze their product portfolio based on market growth and market share. It categorizes products into four quadrants: Stars, Question Marks, Cash Cows, and Dogs, aiding in strategic decision-making regarding investment, development, or divestment.

At a very high level, the Market Share-Growth Matrix is used in the context of business, marketing, strategy.

Market Share-Growth Matrix quadrant descriptions, including examples
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What is the Market Share-Growth Matrix?

A visual explanation is shown in the image above. The Market Share-Growth Matrix can be described as a matrix with the following quadrants:

  1. Question Marks: High market growth but low market share; e.g., a new tech gadget with potential but uncertain future.
  2. Stars: High market growth and high market share; e.g., a leading smartphone model in a rapidly growing market.
  3. Dogs: Low market growth and low market share; e.g., an outdated software product in a declining market.
  4. Cash Cows: Low market growth but high market share; e.g., a well-established household cleaning product with steady sales.

What is the purpose of the Market Share-Growth Matrix?

The Market Share-Growth Matrix, developed by the Boston Consulting Group (BCG), is a strategic tool used to evaluate a company's product portfolio and make informed decisions about resource allocation. The matrix is divided into four quadrants based on market growth rate and relative market share:

  • Stars: High market growth and high market share. These products are leaders in their market and require significant investment to maintain their position and support further growth.
  • Question Marks: High market growth but low market share. These products have potential but require substantial investment to increase market share. They are uncertain and could either become Stars or Dogs.
  • Cash Cows: Low market growth but high market share. These products generate steady cash flow with minimal investment. They are typically mature products that fund other segments of the business.
  • Dogs: Low market growth and low market share. These products may not generate significant revenue and often require more resources than they return. Companies may consider divesting these products.

Use Case: A company with a diverse product portfolio can use the BCG Matrix to identify which products to invest in, develop, or phase out. For example, a tech company might classify its products into the four quadrants to decide where to allocate R&D funds, marketing efforts, and other resources.


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What templates are related to Market Share-Growth Matrix?

The following templates can also be categorized as business, marketing, strategy and are therefore related to Market Share-Growth Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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