Boston Consulting Group (BCG) Growth-Share Matrix

BCG Matrix is considered to be the simplest way to portray a company’s portfolio of investments. It is popularly used for resource allocation in a diversified company.

Using the BCG approach, a company classifies its different businesses on a 2-dimensional growth-share matrix.

• The vertical axis represents the market growth rate and provides a measure of market attractiveness.
• The horizontal axis represents relative market share of the company or the product and serves as a measure of the company’s strength in the market.
• The products are classified n four categories as ‘Stars’, ‘Cash Cows’, ‘Question Marks’ and ‘Dogs’.