BCG Growth Share Matrix Template

Description
The aim of the Growth Share Matrix is to help a corporation efficiently allocate🚰 its ressources (financial + HR) to its different business units or product lines.🏭

This concept was developed by Bruce D Henderson, the Founder of BCG and HBS graduate. In the words of Bruce D Henderson himself, “To be successful🏆, a company should have a portfolio of products with different growth rates and different market shares. The portfolio composition is a function of the balance between cash flows.” This is what the matrix helps businesses do.📊

Cash cows🐮 are business units where the company has high market share in a slow-growing industry. The beauty of these units is that they should be self-sustaining in terms of cash flow🤑 and require little if any investment. In fact investment in this type of business unit is discouraged by BCG Growth Share Matrix analysis because it would be investing in a mature market with very little room for improvement.😕

Dogs🐶 are units with low market share in a slow-growing industry. These units typically struggle to generate enough cash to maintain the business’s market share. In BCG analysis, dogs🐕 should be divested in order to free up cash flow for more profitable investments.💸

Question Marks❓ are business operating in a high market growth industry, but with a low market share. Question marks must be carefully scrutinized in order to judge🧐 whether they will become Dogs or Stars and whether or not on that basis they require further investment to develop their market share.📈

Stars⭐️ are units with a high market share in a rapidly-growing sector. Stars should generate plenty of cash but may at the same time require significant cash injections in order to keep pace with and exploit the growth potential of the market.🤩

- The Eloquens Team