The BCG Matrix

The BCG Matrix is a strategic tool used by companies to analyze their business units or products based on market growth and market share. It categorizes these units into four groups: Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks (high growth, low share), and Dogs (low growth, low share). This helps businesses decide where to invest, develop, or divest, by understanding which areas generate most revenue, require investment, or may be less profitable. It aids in strategic planning and resource allocation to optimize overall company performance.