Evaluating Product Lines Using the BCG Matrix

This video will show you how to evaluate product lines using the BCG Matrix.

by Cate Costa
Entrepreneurship Expert who has taught thousands of business owners worldwide.Follow

151 views|Start the discussion!|Bookmark

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

This Best Practice includes
1 Video File