BCG Matrix and Product Portfolio Basics
Growth–share matrix cards — stars, cash cows, question marks, dogs, and portfolio use/limits.
12 cards· by GuruOwl
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Try it- 01What are the two axes of the classic BCG matrix?Market growth rate (high/low) and relative market share (high/low).bcg
- 02What is a Star in BCG?High growth, high share — invest to maintain leadership; may still need cash.bcg
- 03What is a Cash Cow?Low growth, high share — generates cash to fund other businesses; harvest/defend.bcg
- 04What is a Question Mark (Problem Child)?High growth, low share — invest selectively to build share or divest.bcg
- 05What is a Dog?Low growth, low share — often divest, niche, or manage for cash if still useful.bcg
- 06Intended cash flow logic of BCG?Cows fund stars/selected question marks; weak question marks and dogs are pruned.bcg
- 07Key limitation of BCG matrix?Oversimplifies (share ≠ profit always; growth ≠ attractiveness always); ignores synergies and capabilities.limits
- 08Relative market share usually means what?Your share divided by the largest competitor’s share (not absolute share alone).bcg
- 09As market growth slows, stars ideally become what?Cash cows — if share leadership is maintained.bcg
- 10Is “invest in all question marks” good advice?No — be selective; many will not win share and will burn cash.practice
- 11Portfolio strategy vs single-business strategy?Portfolio allocates capital across businesses; single-business focuses on competitive advantage in one arena.strategy
- 12Why might a “dog” still be kept?Synergies, defensive reasons, option value, or niche profitability not captured by the 2×2.limits