![]() Through careful analysis, companies can identify profitable product lines that should be maintained and which products may need to be cut. Using the BCG Matrix, companies can identify which products would be most beneficial for their portfolio and where to focus future investments. ![]() Dogs – Products with low growth rate and low market share.Question Marks – Products with high growth rate but low market share.Cash Cows – Products with low growth rate but high market share.Stars – Products that generate the most income that have high growth rate and market share.How to use the BCG Matrix to understand the product portfolio? The four categories of the matrix are Stars, Cash Cows, Question Marks, and Dogs. The matrix categories are based on two variables: market growth rate and market share relative to the largest competitor. The Matrix was created by the BCG in the 1970s to help businesses analyze their product lines and manage their investment portfolios. The acronym BCG stands for Boston Consulting Group. This article will explain the four categories of the BCG Matrix and how to use the matrix for product portfolio analysis. It is designed to analyze how each of a company’s products contribute to overall growth and identify patterns in investments, potential opportunities, and weaknesses. The BCG Growth-Share Matrix is an analytical tool used to help develop an understanding of a company's product portfolio.
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