Evaluating Product Lines Using the BCG Matrix

Description
The BCG Matrix compares a product line's market share shown along the X axis and a product line's market growth shown along the Y axis. The matrix thus creates 4 product line categories: stars, questions marks, cash cows and dogs. Stars are those product lines that have a large market share in a rapidly growing market: think the iPod at the early stages of portable digital music devices. Yes, the company may need to invest a lot of resources to keep up with the demands of this product line, but because it's on top of a market that's getting bigger and bigger, those resources should pay off as sales continue to grow rapidly.

Watch this video to hear a full description on each segment of the BCG Matrix so that you can have a better understanding of your product lines and where they fit into the matrix.

Length: 3 minutes 50 seconds