BCG Matrix

Question 1

The Boston Consulting Group (BCG) matrix

Answer 1

is a situational and decision-making tool used for analysing the product portfolio of a business. It shows whether products have a high or low market share and operate in high or low market growth industries.

Question 2

Cash cow

Answer 2

refers to any product in a firm’s portfolio that generates significant money due to its large market share in a mature market

e.g Apple laptop’s

Question 3

Dogs

Answer 3

are the products in the BCG matrix that have low market share and operate in low growth or stagnant markets. Hence, dogs do not generate much cash or profit for a business.

E.g ipods

Question 4

Question marks (or wild cards)

Answer 4

are products in the BCG matrix that compete in high market growth industries but have low market share. They consume lots of cash but do not generate much profit, if any.

E.g Apple TV’s

Question 5

Stars

Answer 5

are products in the BCG matrix that have high or rising market share in a high growth market. They have the potential to become cash cows if funded and marketed properly.

E.g iphones and Apple watches