Simply identify market share and market growth numbers for each member of your product portfolio and place them into the appropriate box.Ĭash cows: A cash cow is a market-leading product or business unit that generates more cash than it consumes. Using the BCG Growth-Share Matrix is a relatively easy proposition. The resulting boxes are labeled as question marks, stars, cash cows, and dogs. Along with the Ansoff Matrix, the BCG model is one of the two most widely used business portfolio models that help you to more easily maximize the overall value of your product portfolio.īoth models are two-by-two matrices, but, while Ansoff labeled his according to market development, market penetration, diversification, and product development, the BCG Growth Matrix places products along a continuum on two axes - covering market growth from low to high on the vertical and low to high market share from left to right on the horizontal. What is it? How does it work? And when do we use it? What is a Product Portfolio Matrix?įirst, some background. Now let’s talk a little about the Boston Consulting Group Matrix itself. And you’ve got all the tools you need to begin your Boston Matrix.
