BCG Growth Share Matrix

By | Investing, Matrix, Strategy

(Excerpt from The Star Principle by Richard Koch)

There is a branch of business theory called strategy , which was invented by a new consulting firm, the Boston Consulting Group (BCG), in the 1960s. BCG’s most famous invention was the growth/share matrix, which says there are four types of business from a strategic viewpoint:

  • stars: leaders in high-growth markets;
  • question marks: followers in high-growth markets;
  • cash cows: leaders in low-growth markets; and
  • dogs: followers in low-growth markets.

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