Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Companies should significantly invest in these “stars” as they have high future potential. Companies should milk these “cash cows” for cash to reinvest. The four symbols represent a certain degree of profitability: question marks, stars, pets (often represented by a dog), and cash cows.Įach of the four quadrants represents a specific combination of relative market share and growth: The quadrants also make it easy to identify a product’s life cycle and where it fits at each stage. Besides that, to move products through the quadrants according to their performance. The BCG Matrix helps to plan strategies and set goals. Its function is to manage the product portfolio and indicate the best investment strategy for a company.Įspecially those who work with sales should know and use the BCG Matrix. The Boston Consulting Group created it in the 1970s. BCG Matrix is also known as the Growth/Share Matrix.
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