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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  1. 01
    What are the two axes of the classic BCG matrix?
    Market growth rate (high/low) and relative market share (high/low).
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  2. 02
    What is a Star in BCG?
    High growth, high share — invest to maintain leadership; may still need cash.
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  3. 03
    What is a Cash Cow?
    Low growth, high share — generates cash to fund other businesses; harvest/defend.
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  4. 04
    What is a Question Mark (Problem Child)?
    High growth, low share — invest selectively to build share or divest.
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  5. 05
    What is a Dog?
    Low growth, low share — often divest, niche, or manage for cash if still useful.
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  6. 06
    Intended cash flow logic of BCG?
    Cows fund stars/selected question marks; weak question marks and dogs are pruned.
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  7. 07
    Key limitation of BCG matrix?
    Oversimplifies (share ≠ profit always; growth ≠ attractiveness always); ignores synergies and capabilities.
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  8. 08
    Relative market share usually means what?
    Your share divided by the largest competitor’s share (not absolute share alone).
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  9. 09
    As market growth slows, stars ideally become what?
    Cash cows — if share leadership is maintained.
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  10. 10
    Is “invest in all question marks” good advice?
    No — be selective; many will not win share and will burn cash.
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  11. 11
    Portfolio strategy vs single-business strategy?
    Portfolio allocates capital across businesses; single-business focuses on competitive advantage in one arena.
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  12. 12
    Why might a “dog” still be kept?
    Synergies, defensive reasons, option value, or niche profitability not captured by the 2×2.
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