Bcg matrix how to#

It is believed that dogs should be sold out or discontinued. Dogs are break-even products, their revenue and market share is too low to justify their continuity. Remove Dogs from Portfolioĭogs belong to a mature market and are units that are unable to make enough money to stay afloat. Let’s take a look at how companies can make use of the BCG Matrix to allocate resources for their products.

The BCG Matrix is used by companies to understand product management. The rule for cash cows is to milk them to fund question marks which might become future cash cows. Cash CowsĬash cows have a high market share in an industry that has slowed down. A star can eventually become a cash cow for a business. These are question marks that were able to graduate to become stars. StarsĪ star is a product with a high market share, in a market with high growth. Question marks are at times also called wild dogs or adopted children. As the name suggests, such a product operates with a low market share in a high growth market. Question MarksĪ question mark or problem child is a product that can either grow to become a star or downgrade and drop down to become a dog. A dog belongs to an industry that has peaked and it is hard for less efficient products to stay afloat. Source: BCG PowerPoint template by SlideModel Dogsĭogs sometimes referred to as pets, have a low market share in a slow-growing industry. The products are divided into Stars, Question Marks, Cash Cows and Dogs.

BCG Matrix consists of a scatter graph to rank products or business units based on their market share and rate of growth. The chart was created by American management expert Bruce D. The Boston Matrix, BCG Matrix or Growth-share Matrix is a chart that was developed by the Boston Consulting Group in 1970 to help businesses analyze their product lines. Question Marks Might Become Stars or Dogs.Striking that delicate balance between how much to allocate and when to allocate funds for product management has long been answered by companies around the world by using the BCG Matrix. Similarly, well-established products might not need a lot of revenue to stay afloat in the market. Some products might seem promising however, the risk of failure can also be high.

Bcg matrix how to#

Companies dealing with multiple products can find it challenging to decide how to allocate resources for them.