At the height of its success, the growth share matrix was used by about half of all Fortune 500 companies; today, it is still central in business school teachings on strategy.It is a table, split into four quadrants, each with its own unique symbol that represents a certain degree of profitability: question marks, stars, pets (often represented by a dog), and cash cows.By assigning each business to one of these four categories, executives could then decide where to focus their resources and capital to generate the most value, as well as where to cut their losses.Ultimately, the market leader obtains a self-reinforcing cost advantage that competitors find difficult to replicate.
![]() These high growth rates then signal which markets have the most growth potential. Bcg Matrix Defined Drivers Of TheseThe matrix reveals two factors that companies should consider when deciding where to investcompany competitiveness, and market attractivenesswith relative market share and growth rate as the underlying drivers of these factors. Each of the four quadrants represents a specific combination of relative market share, and growth: Low Growth, High Share. Companies should significantly invest in these stars as they have high future potential. Companies should invest in or discard these question marks, depending on their chances of becoming stars. Companies should liquidate, divest, or reposition these pets. As can be seen, product value depends entirely on whether or not a company is able to obtain a leading share of its market before growth slows. All products will eventually become either cash cows or pets. Pets are unnecessary; they are evidence of failure to either obtain a leadership position or to get out and cut the losses. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws. Detailed information on the use of cookies is provided in our Privacy.
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