THE BCG GROWTH-

SHARE MATRIX
Presented by
Amrutha M. S.
 Introduction
Portfolio planning model developed by Bruce
Handerson in the early 1970’s
Helps to evaluate the industry growth and the
relative position of a firm in the industry.
An increase in market share results in generation of
cash.
Growing market requires investment in assets to
increase capacity.
Matrix classifies the business of a firm in to four
distinct categories.
The two parameters are market growth and market
share.
The four categories are
Stars
Cash cows
Question marks
Dogs
 Stars
(=High growth , high market share)
Net users of resources
Generate large amounts of cash
Consumes large amounts of cash
Can become the market leader if it maintains its
large market share
Become a cash cow when the market growth rate
declines
 Cash cows
(=low growth, high market share)

Net generator of resources

Brings higher profits
Does not need heavy investment
Provides cash to turn question marks in to stars
 Question marks
(=high growth ,low market share)
Net users of resources
Future is uncertain
High market growth and consumes large amount of
cash
Low market share
Has the potential to gain market share and become
star
Becomes cash cow if market growth decline
 Dogs
(=low growth, low market share)

Low market share

Low growth rate

They are the cash traps

Neither generate nor consumes large amount of cash

BCG MATRIX