The Boston Consulting Group (BCG) Matrix is a tool used by businesses to help them determine what products or services they should invest in. It is also known as the growth-share matrix.
There are four quadrants in the BCG Matrix:
– Stars: Products or services that have high market share and high growth. These are the most successful and important products for a company, and require the most investment.
– Cash Cows: Products or services with low growth but high market share. These products generate a lot of cash for a company, which can be reinvested into other areas.
– Question Marks: Products or services with high growth but low market share. These products require investment in order to increase market share, but it is unclear if they will be successful.
– Dogs: Products or services with low growth and low market share. These products are not likely to be successful and generate very little cash for a company.
The BCG Matrix is a useful tool for marketing because it helps businesses invest in the right products or services. It also allows businesses to identify which products or services they should focus on in order to generate the most cash. Finally, it can help businesses decide when to divest from certain products or services that are not performing well.