Sales Growth Matrix

The Sales Growth Matrix is a strategic business tool used to evaluate and analyze the growth potential of a company's products or services. It helps businesses identify where to allocate resources for maximum growth by categorizing products based on their market growth rate and market share.

At a very high level, the Sales Growth Matrix is used in the context of business, marketing, finance.

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What is the Sales Growth Matrix?

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

  1. Stars: High market growth and high market share. Example: A leading smartphone model in a rapidly growing market.
  2. Question Marks: High market growth but low market share. Example: A new tech gadget with potential but low current sales.
  3. Cash Cows: Low market growth but high market share. Example: A well-established household cleaning product.
  4. Dogs: Low market growth and low market share. Example: An outdated software product with declining sales.

What is the purpose of the Sales Growth Matrix?

The Sales Growth Matrix, also known as the Growth-Share Matrix, is a framework developed by the Boston Consulting Group (BCG) to help businesses analyze their product portfolios. 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.
  • Question Marks: High market growth but low market share. These products have potential but require substantial resources to increase market share.
  • Cash Cows: Low market growth but high market share. These products generate steady cash flow with minimal investment.
  • Dogs: Low market growth and low market share. These products may drain resources and are often candidates for divestiture.

By categorizing products into these quadrants, businesses can make informed decisions about where to invest, develop, or divest. For example, a company might decide to invest heavily in 'Stars' to maintain their market leadership, while 'Cash Cows' can be used to fund other ventures. 'Question Marks' require careful analysis to determine if they can become 'Stars' or if they should be phased out. 'Dogs' are typically considered for divestiture to free up resources for more promising opportunities.


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What templates are related to Sales Growth Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Sales 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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