BCG matrix( the Boston consulting groups product portfolio matrix)
This is a type of tool that helps us to in which product we have to to invest or divest in product line.
What is a product line?
A company that have more than 1 product is known as product.
Symbols in BCG matrix
Before starting BCG matrix there is market growth line- the grow of particular product's industry.
Relative market share- how much % or share you own in particular product's industry.
Symbols in BCG matrix
There are 4 symbols in BCG matrix
•Star⭐- product share is high and market growth is also high this product in company known as star. We have to hold this product in company.
•Question Mark?- market growth is high but share in market isn't high this product is known as question mark. We have to find problems and invest in particular product.
•Cash cow🐮- market growth is low but share is high this product in company known as cash cow. There is no future we have to harvest money from this product industry and have to invest money from this to question mark and star.
•Dog🐶 - market share is low and also market growth. We have to divest in this product.
We hope now you understand the BCG matrix.
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