Boston Consulting Group (BCG) Matrix is a four celled matrix developed by BCG, USA.

It provides a graphic representation for an organization to examine different businesses based on their related market share and industry growth rates. Example: HUL, ITC etc. which have multiple categories and within the categories, they have multiple lines of products, the BCG analysis becomes very important. According to this matrix, business could be classified as high or low according to their relative market share and industry growth rate. 1) Relative Market Share The market share of the business / SBU / Product in the market as compared to its competitors and overall product / category. 2) Market growth rate The growth rate of the industry as a whole is taken into consideration from which the growth rate of the product is estimated.

1. Stars 1. High growth and high market share 2. High competition 3They may generate cash but because of fast growing market, stars require huge investments to maintain their lead 4. a star will become a cash cow when the industry matures. ExSwift,alto,desire

2. Cash Cows 1. Low growth and high market share 2. Most profitable units in the market. 3. These SBUs are the corporations key source of cash 4. The investment needed is low because low growth in the market ExWagonr,Sx4,A-star 3. Question Marks 1. High growth and low market share. 2. Question marks are generally new goods and services 3. High market growth needs more investment, profit is less or nothing 4. Because of low market share here is uncertainty. 5. Need a huge resource to gain market share ExVersa,baleno,omni 4. Dogs 1. Low growth and low market share 2. Less profitable or may even be negative profitability 3. These business firms have a weak market share because of high costs, poor quality, ineffective marketing, 4. Avoid and minimum the number of dog in company 5.They neither generate cash nor require huge amount of cash. ExMaruti 800,Zen