With this information, companies can make better strategic decisions on where to invest their efforts and which products should be shut down or divested.
Ultimately, the BCG Growth Share Matrix can be used a way to bolster a company’s profitability.
If the unit performs well, question marks have a chance to becomes stars and eventually into cash cows once the industry growth declines.
If the product fails to gain traction, the question mark becomes a dog.
The company owns several product lines that can be categorized into different categories across the BCG Matrix.
Here is a BCG Matrix example of how some of Apple’s products could be categorized using the matrix: Because of the limitations of the BCG Growth Share Matrix, we are not providing a BCG Matrix Template at this time.However, if sales are stagnant and the product does not seem to be satisfying customers, the firm may decide to pull the plug on the product altogether before it drains the finances of the firm further.Alternatively, if the product has a future, but the firm cannot, or does not want to make the required investment it may choose to sell the patent, brand name or design to another firm.The hope is that eventually as the industry growth rate dies down, the stars become cash cows.One of the most widely well known consumer product companies in the world is Apple.Question marks are the business units operating with low market share in a high-growth market.These products tend to reduce a company’s cash flow initially because they require heavy investment in order to grow.Question marks must be analyzed thoroughly and carefully to determine whether they are worth the investment required to grow market share.The Stars are business units with both high market share and a high growth industry.Now that you know the fundamental principles behind the BCG Matrix, let’s dive deeper into each category.Cash cows are the products with high market share in a slow-growing industry.