BCG Matrix Generator
Create a Boston Consulting Group (BCG) matrix to analyze your product portfolio based on market growth and relative market share.
BCG Matrix Visualization
Stars
High growth, high market share. Invest to maintain leadership.
Question Marks
High growth, low market share. Decide whether to invest or divest.
Cash Cows
Low growth, high market share. Harvest for cash flow.
Dogs
Low growth, low market share. Consider divestment.
Understanding the BCG Matrix
The Boston Consulting Group (BCG) Matrix is a strategic planning tool that helps organizations analyze their product portfolio and make decisions about resource allocation, investment strategies, and growth opportunities.
The Four Quadrants Explained
| Quadrant | Characteristics | Recommended Strategy |
|---|---|---|
| Stars | High market growth, high relative market share | Invest to maintain leadership position and capitalize on growth |
| Question Marks | High market growth, low relative market share | Invest selectively or consider divesting; requires careful analysis |
| Cash Cows | Low market growth, high relative market share | Minimize investment and harvest profits to fund other initiatives |
| Dogs | Low market growth, low relative market share | Consider divestment, liquidation, or repositioning |
Key Factors in BCG Matrix Analysis
- Market Growth Rate: The annual growth rate of the market in which the product competes
- Relative Market Share: The product's market share divided by the largest competitor's market share
- Revenue Size: Represented by the size of the circle in the matrix
- Market Boundary: Typically, 10% growth separates high and low growth markets
- Market Share Boundary: A relative market share of 1.0 (equal to largest competitor) separates high and low share
Limitations and Considerations
Simplistic View
The BCG matrix reduces complex market dynamics to just two dimensions, which may oversimplify the strategic context.
Static Analysis
The matrix provides a snapshot in time and doesn't account for rapid market changes or disruptions.
Focus on Existing Products
The framework is best suited for analyzing current products rather than identifying new opportunities.
Data Requirements
Accurate market growth and market share data can be difficult to obtain, especially in emerging or fragmented markets.