BCG Matrix, also known as growth-share matrix is a corporate planning tool, which is used to portray a firm’s brand portfolio on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis.
To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.
Cash cows is where a company has high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Cash "milked" is used to fund stars and question marks, that are expected to become cash cows some time in the future.
Dogs, more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share.
Question marks (also known as adopted children or Wild dogs) are businesses operating with a low market share in a high-growth market. They are a starting point for most businesses. Question marks have a potential to gain market share and become stars, and eventually cash cows when market growth slows. If question marks do not succeed in becoming a market leader, then after perhaps years of cash consumption, they will degenerate into dogs when market growth declines.
Stars are units with a high market share in a fast-growing industry. They are graduated question marks with a market- or niche-leading trajectory
Stars require high funding to fight competitors and maintain their growth rate. When industry growth slows, if they remain a niche leader or are amongst the market leaders, stars become cash cows; otherwise, they become dogs due to low relative market share.
Here is the BCG Matrix of Asãbaab Designs and its portfolio of brands:
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