BCG Matrix
Developed by the Boston Consulting Group in 1970, the BCG Matrix (Growth-Share Matrix) is a strategic portfolio analysis tool that plots business units or products across two dimensions: relative market share (horizontal axis) and market growth rate (vertical axis). The resulting 2x2 grid produces four quadrants — Stars (high share, high growth), Question Marks (low share, high growth), Cash Cows (high share, low growth), and Dogs (low share, low growth). In a workshop context, the BCG Matrix forces teams to have an honest conversation about which products or initiatives deserve investment, which should be harvested for cash, which need a strategic decision, and which should be divested. It prevents the common trap of spreading resources evenly across a portfolio regardless of strategic value. Teams must gather at least rough data on relative market position and industry growth before the session — numbers make the conversation real. The tool is most powerful when combined with qualitative discussion about competitive dynamics and market trajectory, not just plotted as a static snapshot.
How to run it
- 1
Before the workshop, collect data: estimated market growth rate and relative market share for each product, service, or business unit under review.
- 2
Draw or project the BCG Matrix: x-axis = Relative Market Share (right = high), y-axis = Market Growth Rate (up = high). Mark the midpoints for each axis.
- 3
Plot each product or unit as a circle on the matrix — size the circle proportional to revenue or strategic importance.
- 4
Label each quadrant: Stars (top-right), Question Marks (top-left), Cash Cows (bottom-right), Dogs (bottom-left).
- 5
Discuss each item together: Is the placement accurate? Is the growth rate sustainable? Is the market share figure reliable?
- 6
For each item, agree on a strategic directive: invest and grow (Stars), decide quickly (Question Marks), harvest (Cash Cows), or divest/discontinue (Dogs).
- 7
Identify resource flows: which Cash Cows will fund which Stars or promising Question Marks?
- 8
Document decisions and assign owners — the matrix is only useful if it drives action.
Tips
Gather real data before the session — gut feel placements lead to political debates rather than strategic clarity.
Use market growth rate benchmarks (e.g.
>10% = high in most industries) agreed by the team upfront.
Don't treat the matrix as permanent: markets shift and so should classifications.
Challenge the assumption that Dogs are always bad — sometimes a low-growth, low-share product serves a key customer segment.
Variations
Run a 'Future BCG' where teams predict where each item will sit in 3 years given current trajectories. Combine with Ansoff Matrix to map diversification moves from current Cash Cows into new growth areas.
Where it fits
Frequently asked questions
When should I use BCG Matrix?â–¾
Use BCG Matrix when you want to: Product portfolio review; Annual strategic planning; Investment prioritisation workshops; Business unit performance review; M&A target evaluation.
How long does BCG Matrix take?â–¾
BCG Matrix typically takes 60–120 minutes.
How many participants does BCG Matrix work for?â–¾
BCG Matrix works best for groups of 3–15 participants.
What materials do I need for BCG Matrix?â–¾
To run BCG Matrix you will need: BCG Matrix template (A1 or projected), sticky notes, markers, data on revenue/market share per product or business unit.
How difficult is BCG Matrix to facilitate?â–¾
BCG Matrix is rated intermediate — some facilitation experience is helpful.
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Try it freeMethod descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from Boston Consulting Group (Bruce Henderson, 1970).