View all our courses and get certified on academy.marketing91.com
BCG Matrix is a tool that is used internally to assess and evaluate the value of an organization’s product lines based on growth and market share.
BCG Matrix is a product planning model used for the portfolio management of various business units.
BCG Matrix - Diagram
Relative Market Share is shown on the X-axis and Market Growth Rate on the Y-axis.
The four quadrants of the BCG Matrix are-
Stars
Stars have a high growth rate as well as a higher market share where growth occurs at the expense of cash. With time the Stars become cash cows who are used to develop new stars and fund other products.
Cash Cow
Cash Cows have a low growth rate but a higher market share which shows low expense but high returns. A business entity is focused on maximizing cash cows as these finance question marks and stars.
Question Mark
Question Mark has a high growth rate but low market share and this makes the future potential unsure. With the right investments and strategies these can become cash cows and stars and with a wrong investment they can drop down to become Dogs.
Dogs
Dogs have a low growth rate as well as a low market share. These are not considered worthy of investment as they need large investments and are still unable to generate cash.
Example - Apple 2020 Revenue by Segments
Net sales by product category are mentioned in this timestamp
Example - Apple
Stars-
1. Apple Airpods
2. Apple Watch
3. Apple Service
Cash Cows -
1. iPhone
2. Mac
Question Mark
1. Apple TV
2. iPad
Dogs
1. iPod
Example - Cash Cow
1. iPhone
Example - Stars
1. Apple Services
Example - Question Mark
1. Home Pod
2. iPad
Example - Dog
1. iPod
This video is on BCG Matrix and it has the following sub-topics.
Time Stamps
0:00 BCG Matrix Introduction
00:48 BCG Matrix - Diagram
01:05 Star
01:19 Cash Cow
01:35 Question Mark
01:50 Dog
02:08 Example - Apple 2020 Revenue by Segments
03:19 Example - Apple
03:40 Example - Cash Cow
04:18 Example - Stars
05:08 Example - Question Mark
05:57 Example - Dog