Definition: the BCG Matrix is an early (1970) strategic portfolio management tool created by the Boston Consulting Group.
The idea behind it is that to ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.
Placing the products of a strategic business unit in 2 dimensions (market growth and market share) creates 4 quadrants and corresponding investment strategies:
- Cash Cows (low market growth, high market share)
- Stars (high, high)
- Question Marks (high, low)
- Dogs (low, low)
Also called Business Portfolio Matrix or Growth-Share Matrix.
MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.
We love to keep things really short, but provide links to learn more about your subject and to similar concepts.
© 2021 MBA Brief - Last updated: 14-4-2021 - Privacy | Terms