Frameworks
BCG growth-share matrix
Sorting businesses by market growth and relative market share.
Last reviewedWhat does BCG growth-share matrix mean?
The growth-share matrix, created by Bruce Henderson at the Boston Consulting Group around 1970, places each business unit by market growth rate and relative market share: stars (high growth, high share), cash cows (low growth, high share), question marks (high growth, low share) and dogs (low growth, low share). It helps decide where to invest cash, but it uses only two measures and ignores links between units.
Where does it come up in case interview prep?
Related terms
- Relative market shareOur share divided by the largest competitor's share.
- Ansoff matrixFour growth routes: existing or new products in existing or new markets.
- Porter's Five ForcesFive pressures that shape how profitable an industry is.
- Porter's generic strategiesCompete on lowest cost, on being different, or by focusing on a niche.
- McKinsey 7S frameworkSeven parts of an organization that must fit together.
- SWOT analysisStrengths, weaknesses, opportunities and threats.
- PESTEL analysisPolitical, economic, social, technological, environmental and legal factors.
- Value chainThe activities a firm performs to create and deliver value.