Definition

Developed by the Boston Consulting Group (1970), the BCG Matrix helps firms prioritize product investments based on market growth rate and relative market share.

Introduction

It’s the corporate strategist’s compass — showing which products deserve investment, maintenance, or divestment.

Explanation

Quadrants:

Stars: High growth, high share — invest heavily.
Cash Cows: Low growth, high share — generate profits.
Question Marks: High growth, low share — decide to invest or drop.
Dogs: Low growth, low share — phase out.

Key Takeaways

Allocates resources efficiently.

Encourages portfolio balance between risk and stability.

Must combine with qualitative insights.

Real-World Case

Coca-Cola manages Stars (Coke Zero), Cash Cows (Classic Coke), and Dogs (discontinued brands) strategically using the BCG framework.
Reference: https://www.coca-colacompany.com