The Boston Box, created by the Boston consulting group, classifies products according to their market share and potential for market growth. It is often used by management to help decide on the appropriate product range.
BCG Growth-Share Matrix
|
High Market Share |
High Market Growth |
Low Market Growth |
|
Stars |
Cash Cows |
|
|
Low Market Share |
Problem Children |
Dog |
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Stars are high-growth, high share businesses or products. They often need heavy investment to finance their rapid growth.
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Cash cows are low-growth, high-share businesses or products, but will still need marketing to maintain its portion of the market.
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Problem Children are low-share business units in high-growth markets. It will probably require intensive advertising.
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Dogs are low-growth, low-share businesses and products which are probably making a loss and should be dropped from the product range.
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