Definition of Bcg Matrix
The Boston Consulting Group (BCG) introduced a growth-share matrix planning tool in 1970 to access the product or services of the company to decide which products to keep, sell, or invest in further.
The BCG matrix divide company products into four-square matrix – dogs, cash cows, stars, and question marks. The x-axis of this matrix represents the market share while the y-axis represents the rate of market growth.
The distinct categories of the matrix have the following product categories in it.
- Dogs: Products that not only have a low market share but also have a low growth rate.
- Cash Cows: Products that have a high market share but they have a low growth rate.
- Question Marks: Products that have low market share but relatively a high growth rate.
- Stars: Products that have both high market share and a high growth rate.