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BCG Matrix

L1StrategyGrowth and portfoliodecisionStages 3 to 5

Reference model

The BCG growth-share matrixA two-by-two grid of market growth rate against relative market share. High growth and high share is a Star; high growth and low share is a Question mark; low growth and high share is a Cash cow; low growth and low share is a Dog. Bubble area shows each product line’s revenue.StarsHigh growth · high shareInvest to hold leadershipQuestion marksHigh growth · low shareInvest selectively — or exitCash cowsLow growth · high shareHarvest the cash; defendDogsLow growth · low shareDivest, or run for cashRELATIVE MARKET SHAREHigh (1.0× or more)Low (under 1.0×)MARKET GROWTH RATEHighLowBubble area = the product line’s revenue

Market growth (up) against relative market share (across, high on the left). Bubble area is the product line’s revenue.

About this model

Sorts each product line or business unit by two things — how fast its market is growing and how large its share is relative to the strongest competitor — into Stars, Question marks, Cash cows and Dogs, to decide where to invest, hold, harvest or exit.

Bruce Henderson — Boston Consulting Group · 1970

How to read it

  • Relative share is your share divided by the largest competitor’s share. A 20% share against a 40% leader is 0.5×; 1.0× or more means you lead.
  • Market growth is the growth of the market, not of your own sales. Above the cut-off is “high growth”.
  • Cash cows should fund Stars and the best Question marks; Dogs are held for cash or exited.

What this does

Places each product line by market growth vs. relative share — Star, Cash Cow, Question Mark, or Dog — to guide where to invest, hold, or exit.

When to use it

Once you have two or more product lines and need to allocate limited capital between them.

What happens next

Investment calls here feed the Investment Prioritization Matrix and the Financial Model's capex line.

Golden thread

Builds on ←

    A starting point: it needs no earlier tool.

    Feeds into →

    • financial

    Framework library: Strategy and environment (layer L1), lifecycle stages 3 to 5.

    Use this tool, free

    Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

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    Hand-built by Eccellere and reviewed by Eccellere on 02/11/2026. Guidance, not advice: apply your own judgement.