BCG Growth-Share Matrix

Thinking Tools5.2 Selecting the Right Decision ToolsAlso known as Boston matrix

Developed by Bruce Henderson at the Boston Consulting Group (The Product Portfolio, 1970).

Plots each business unit by market growth and relative share into stars, cash cows, question marks, and dogs, showing which units should fund which.

When to reach for it

In a portfolio review or capital-allocation debate across several business units or product lines.

How it runs

  1. Plot each unit by market growth and relative market share.
  2. Sort the units into the four quadrants.
  3. Fund stars, harvest cash cows, decide on question marks, and exit dogs.
  4. Treat the result as a starting point for portfolio strategy.
  5. Replot each year as positions shift.

Where it sits in SOLVE eX

Go to the source

  • The Product Portfolio, BCG Perspectives, Boston Consulting Group, 1970

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