# BCG Matrix

**Framework:** BCG Growth-Share Matrix  
**Use for:** Portfolio prioritization — categorizing business units, product lines, or initiatives by their market growth rate and relative market share to guide resource allocation decisions.  
**Time required:** 30–60 minutes once you have the market data. Data gathering may take longer.

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## How to use this template

1. **Gather the data first.** You need two numbers for each unit you're analyzing: (a) the market's annual growth rate and (b) your relative market share (your share divided by the largest competitor's share). Without real data, the matrix is just labeling opinions.
2. **Define the portfolio.** List every business unit, product line, or initiative you're evaluating. The BCG matrix only produces insights through comparison within a portfolio.
3. **Set the thresholds.** The growth-rate threshold divides "high" from "low" growth (often 10% is used, but set it based on what's high for your industry). The relative market share threshold divides "high" from "low" (1.0x means you match the market leader; above 1.0x means you are the leader).
4. **Classify and resource accordingly.** Stars get investment. Cash Cows are milked to fund Stars. Question Marks get a decision: invest to build share, harvest, or exit. Dogs are candidates for divestiture unless there's a strategic reason to keep them.
5. **Revisit regularly.** Products move through quadrants over time. A Star can become a Cash Cow as the market matures; a Question Mark that doesn't receive investment tends to become a Dog.

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## Portfolio being analyzed

**Company / division:** _______________  
**Date:** _______________  
**High-growth threshold used:** _____% per year  
**High relative-share threshold:** _____ x competitor share

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## Step 1: List your portfolio units

| Unit / product | Annual market growth rate | Your market share | Largest competitor's share | Relative share (yours ÷ theirs) |
|---|---|---|---|---|
| _[Example: Product A]_ | _12%_ | _18%_ | _22%_ | _0.82x_ |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |

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## Step 2: Classify each unit

| Unit | Quadrant | Rationale |
|---|---|---|
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |
| | ☐ Star  ☐ Cash Cow  ☐ Question Mark  ☐ Dog | |

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## Step 3: The matrix

```
HIGH MARKET GROWTH
        |
        |   QUESTION MARKS        STARS
        |   (invest or exit)      (invest aggressively)
        |
        |   ________________________________
        |
        |   DOGS                  CASH COWS
        |   (harvest or divest)   (protect and milk)
        |
LOW MARKET GROWTH
        ___________________________________
        LOW relative share       HIGH relative share
```

**Place your units on the matrix above by writing their names in the appropriate quadrant.**

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## Step 4: Resource allocation decisions

| Unit | Current quadrant | Recommended action | Investment level |
|---|---|---|---|
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |
| | | ☐ Invest  ☐ Hold  ☐ Harvest  ☐ Divest | |

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## Portfolio health check

- **How many Stars do we have?** _____ (pipeline for future Cash Cows)
- **How many Cash Cows?** _____ (should fund investment in Stars and Question Marks)
- **How many Question Marks?** _____ (needs a clear invest-or-exit decision)
- **How many Dogs?** _____ (candidates for divestiture or rationalization)

**Overall portfolio balance assessment:**

_______________

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*The BCG Growth-Share Matrix was developed by Bruce Henderson at the Boston Consulting Group in 1968. Covered in the Frameworks & Mental Models Guide on biztechprimer.com.*