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BCG Matrix (Growth-Share Matrix)
Boston Consulting Group's portfolio analysis tool that classifies business units by market growth rate and relative market share into four quadrants: Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks (high growth, low share), and Dogs (low growth, low share). The strategic logic: use cash from Cows to invest in Stars and promising Question Marks, and divest Dogs. While simplified, it forces explicit resource allocation conversations.
When to use it
When facing strategic decisions under uncertainty; when multiple stakeholders have competing interests; when the stakes are high and reversibility is low.
How it can help
Provides frameworks for navigating competitive landscapes, allocating resources under uncertainty, and making high-stakes decisions with incomplete information.
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