It consists of two dimensions: market share and market growth rate.
Based on these dimensions, the company's products fall into one of four areas: stars, question marks, dairy cows and dogs.
Stars are products that have a large market share and are growing rapidly. They require a lot of investment, but have the potential to be very profitable in the future.
Question marks are products with a low code phone number philippines market share but are growing rapidly. They require a large investment, but their future profitability is uncertain.
Dairy cows are products that have a large market share but grow slowly. They are stable products that generate a steady income but do not require a large investment.
They have a low market share and are growing slowly. They are unprofitable and the value of their future earnings is low.
More details below.
BCG Matrix (also known as BCG Portfolio Analysis) is a useful tool for analyzing a company's products and services. It is one of the oldest and most well-known methods of portfolio analysis. It is named after the Boston Consulting Group, which was the first to use this tool in 1969.
Objective of portfolio analysis
Portfolio analysis is a process that allows you to make decisions about the range of products offered by the organization. Carried out effectively, it allows you to evaluate the different areas of a company's operation, which in turn allows you to identify those that can provide competitive advantages and those that do not meet expectations. Portfolio methods allow the strategic formulation of variables in a coordinate system. They serve to determine the external and internal state of the company.