BCG growth share matrix


A planning model developed by Bruce Henderson of the Boston Consulting Group (BCG) in the 1970s. The model compares each business unit of a company against its main competitor in terms of market growth and market share. Business units are divided into four categories. "Dogs" have low market share and low market growth. They are candidates for divestiture. "Question marks" have high market growth but low market share. They should be watched carefully to see if their competitive position improves. "Stars" have high market growth and high market share.
They generate large amounts of cash, but they also require large investments to maintain their growth. "Cash cows" have large market share in a mature market. They generate a large part of the company's income.

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You should try to use a BCG growth share matrix to come up with new ways to increase your profits.

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Our new company was shown to be a question mark under the BCG Growth Share Matrix as we show great growth potential in the market even though our overall market share value is low.

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In business a company uses the BCG Growth Share matrix to compre each of its business units against its main competetor in terms of market growth and market share and then divided into market share categories including dogs, which have low market share and growth.

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