What is BCG matrix?

Question

What is BCG matrix?

Accepted Answer

BCG matrix is a strategic tool used to analyze a company's product portfolio and make decisions about resource allocation.

BCG stands for Boston Consulting Group, the consulting firm that developed the matrix.
The matrix categorizes a company's products into four categories: stars, cash cows, question marks, and dogs.
Stars are high-growth, high-market-share products that require heavy investment to maintain their position.
Cash cows are low-growth, high-market-share products that generate a lot of revenue and profit.
Question marks are high-growth, low-market-share products that require investment to grow market share.
Dogs are low-growth, low-market-share products that may be candidates for divestment.
The matrix helps companies make decisions about which products to invest in, which to divest, and which to maintain.
The BCG matrix is just one tool in a company's strategic planning toolkit.

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