BCG Matrix

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OR The growth–share matrix, The product portfolio matrix, Boston Box, BCG-matrix, Boston matrix, Boston Consulting Group Analysis, Portfolio Diagram

The BCG Matrix classifies business units or products into four categories based on combinations of market growth and market share relative to the largest competitor. These categories are:
Stars: Products or business units with high market share in fast-growing industries. These are seen as promising and profitable, often requiring substantial investment to support their growth.
Cash Cows: These have a high market share in a low-growth industry. They generate more cash than what is needed to maintain the business, often funding other business units.
Question Marks: They are in high-growth markets but have a low market share. They require significant investment to improve their market position.
Dogs: These have a low market share in low-growth markets. They typically generate just enough cash to maintain themselves without being major profit centers.

The success and versatility of the Boston Consulting Group (BCG) Matrix largely stem from its focus on two crucial dimensions - market share and market growth. These dimensions, in a broader context, address the two fundamental questions of #competitivestrategy: "where to compete" and "how to win."
Market Share (How to Win): Market share represents a company's competitive position within a market. It's a direct measure of how well a company is doing against its competitors. A higher market share often implies cost advantages due to economies of scale, greater customer loyalty, and better market dominance. In the BCG Matrix, market share is used to assess the strength of a business within its market. This answers the strategic question of "how to win" by emphasizing the importance of building and maintaining a strong market position.
Market Growth (Where to Compete): Market growth indicates the potential for future profits in a market. High-growth markets are generally more attractive as they offer opportunities for expanding revenues and profits. By evaluating market growth, companies can determine where to compete. The BCG Matrix categorizes markets into high and low growth, helping companies decide which markets (or product areas) offer the best opportunities for investment and growth and which are less promising.

https://www.bcg.com/about/overview/our-history/growth-share-matrix
https://www.linkedin.com/pulse/bcg-matrix-danger-simple-frameworks-stefan-michel-c43se
https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix