Overview
The Growth-Share matrix was created by BCG to chart a company’s products against each other.
The matrix plots market share on the x-axis and rate of market growth on the y-axis.
If a product has low market share, and low rate of growth, it should be scrapped.
If a product has low market share but high rate of growth, it should be revisited frequently to see if they’re worth the resources.
If a product has high market share and low rate of growth, it’s a cash cow that sustains itself.
Finally, if a product has high market share and high rate of growth, it’s a star that the company should double down on. Stars that maintain market leader position becomes cash cows when the market matures.
Do not confuse this with: Ansoff Matrix, Value/Effotr Matrix
