The different categories help you simplify complex decision-making about investment and business focus. Question marks: Currently low market share in a fast-growing market.Dogs (or pets): Low market share in a market with a slow growth rate.Cash cow: High market share in a mature market.Stars: High market share in a high-growth market.Market growth rate: The rate at which a certain market grows in revenues compared to the previous year.īased on these two metrics, you divide your company’s businesses or products into four categories:.Relative market share: Your share of the market compared to your largest competitor.To help you roughly estimate the profitability of a business, the matrix uses the two metrics of relative market share and market growth rate. It divides a company’s business units into categories based on their respective market shares and market sizes. The Growth Share Matrix, also known as the BCG Matrix, is a portfolio management framework developed by the Boston Consulting Group’s founder in 1968. BCG Matrix definition: What is a Growth Share Matrix?
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