BCG Growth-Share Matrix

Overview

The BCG Matrix classifies products or business units into four quadrants based on market growth rate (Y-axis) and relative market share (X-axis). It guides resource allocation: where to invest, where to harvest cash, and what to divest.

When to Use

Trigger conditions:

• User managing multiple products or business units and needs to prioritize
• User asks "which products should we invest in vs cut?"
• User needs a portfolio-level view of their business
• User mentions "cash cow", "star product", or "portfolio strategy"

When NOT to use:

• For single-product strategy → use SWOT or Blue Ocean
• For industry-level analysis → use Porter's Five Forces
• When detailed financial modeling is needed → use DCF or financial ratios