What Is The BCG Matrix?
The BCG matrix refers to the Boston Consulting Group matrix. It was a model devised by the Boston Consulting Group for companies to figure out how well their business units are performing in the market. The interesting aspect of the BCG matrix is that the business units are stacked up against those of the competition. The BCG matrix consists of a grid on the X and Y axis. The X axis denotes the market share while the Y axis denotes the growth rate of the market. There X axis moves from High to Low while the Y axis moves from Low to High. As a result all the four quadrants will belong to a combination of High and Low. Market Share – Growth Rate – Quadrant High – Low – Cash Cow High -High – Star Low -Low – Dog Low – High – Question Mark If a product belongs to the Dog or Question Mark quadrant the company will need to take a decision if it needs to continue with that particular business unit.
