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The BCG matrix, also known as the Boston Consulting Group matrix, is a tool used by businesses to evaluate the performance of their different products or product lines. The matrix is based on two dimensions: market share and market growth.

Market share is a measure of how much of the total market a product or product line represents. Market growth is a measure of the rate at which the market is expanding.

The BCG matrix classifies products or product lines into four categories:

  1. Stars: These are products or product lines that have a high market share in a growing market. Stars are typically the most profitable products or product lines for a business, and require significant investment to maintain their market position.
  2. Cash cows: These are products or product lines that have a high market share in a mature or declining market. Cash cows are typically very profitable, but do not require significant investment in order to maintain their market position.
  3. Dogs: These are products or product lines that have a low market share in a mature or declining market. Dogs are typically not very profitable, and may require significant investment in order to turn them around.
  4. Question marks: These are products or product lines that have a low market share in a growing market. Question marks are typically not very profitable, but have the potential to become stars if they can gain a larger share of the market.
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