The ‘Dog’ is a product with a low market share and lesser growth possibilities, the company can look to phase out this product. ‘Cash Cow’ as the name suggests, is a product with a very high market share and revenue but little growth potential, they milk the cow and use the revenue on developing products with potential. ‘Question Mark’ depicts a product with considerable growth potential but a low market share, a company can determine whether they can turn this product into a star or divest from it. The ‘Star’ represents the highest-performing product of the company in terms of Market Share with a high growth rate. In addition to the growth rates factors like market attractiveness and product innovation are essential. This matrix helps companies analyze their corporate strategy to understand which products they can invest in, allocate resources to, or cash out from. It takes into account two factors: relative market share and growth rate to categorize product lines or SBUs into Star, Question Mark, Cash Cow, and Dog. The BCG Matrix was developed by the Founder and former CEO of BCG, Bruce Henderson.
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