Thus, there is a lot of competition in this segment. Stars are products with high market growth rate but low market share. The best product which comes in mind when thinking of Stars is the telecom products. Let’s discuss the characteristics and strategies of each quadrant in detail for BCG Matrix.Īlso Read Money Back Guarantee - Meaning, Pros And Cons 2) Stars On the basis of this classification, strategies are decided for each SBU / Product. Dogs – Low market share and low growth rate (less profitable or may even be negative profitability).Question marks – Low market share and high growth rate (uncertainty).Stars – High market share and High growth rate (high competition).Cash Cows – High market share but low growth rate (most profitable).

Once the businesses have been classified, they are placed into four different quadrants divided into: Thus when we consider growth rate and market share together, it automatically gives us an overview of the competition and the industry standards as well as an idea of what the future might bring for the product. The market share, on the other hand, comprises of the competition and the product potential in the market. Thus by having 2 basic but at the same time very important factors on X axis and Y axis, the bcg matrix makes sure that the classifications are concrete.Ĭalculating the Market growth rate comprises of both industry growth and product growth rate thereby giving a fair knowledge of where the product / SBU stands in comparison to the Industry. Also Read Strategic Control - Types, Process and Contribution

Bcg matrix nike