The BCG matrix approach to corporate strategy formulation
The diagram summarises an approach to business portfolio planning developed by the Boston Consulting Group and known as the BCG matrix. This framework ties strategy formulation to an analysis of business opportunities according to industry or market growth rate and market share. As shown in the diagram, this comparison results in the following four possible business conditions, with each being associated with a strategic implication: stars — high market share, high-growth businesses; cash cows — high market share, low-growth businesses; question marks — low market share, high-growth businesses; and dogs — low market share, low-growth businesses.
