What is the BCG Matrix?

bitheerani319 · Post by **bitheerani319** » Thu Jan 23, 2025 5:06 am

The BCG Matrix or growth-share matrix is an essential strategic marketing tool for companies. This matrix helps companies analyze their product portfolio to propose the most advisable strategy to carry out.
The matrix is made up of two axes. The vertical axis represents the market growth rate (demand for a product in a market) , the horizontal axis represents the market share (sales of our product/total sales of the product in the market).
It is a very simple matrix for decision making, it is made up of a 2x2 quadrant, and depending on the situation of each one, it proposes the most advisable strategy to carry out.
This matrix allows you to carry out an internal analysis to give us the bangladesh phone number list indications so that the company can decide which products are more profitable to invest its resources in and which ones it should withdraw them from.

What are the components of the BCG matrix?
As I mentioned earlier, each axis defines a different dimension; the vertical axis measures market growth, while the horizontal axis of the matrix measures market share. The axes form a quadrant with the different types of products and their situations detailed below:

Product – Star
In the BCG matrix, star products have high growth and a high market share. They are great generators of liquidity and are in a dynamic environment, so it is important to pay them the necessary attention. In addition, they need constant investment to consolidate their position in the market and thus become a mature product, which would become a cash cow . However, in those markets that are constantly subject to technological innovation, star products can end up becoming dog products , since, even by investing large amounts of resources, competitors can push them out of the market.

Product – Question Mark
These are products with high growth, but with a weak market share. As they have high growth, they normally require high financial investments, but as they have a low market share, the income they generate is low.