Placed in the upper right quadrant, question marks define products that have high growth rate but a low market share. Question Marks - High Growth, Low Market Share.Yet, BCG Matrix star is recommended to be invested in more. However, high market share can lead to more cash flow that can eventually turn a star into a cash cow. Such products are usually popular among the target audiences and show a rapid growth rate over time. With both categories qualified as high, stars in a company qualify to be the most beneficial line of products that must be continued by the company at any and every cost. Products placed in the upper left quadrant, i.e stars are categorized to be high in growth rate and market share. Given below is an image of the graphical setup of the BCG Matrix model. These 4 quadrants are placed in such a way that they divide a larger square into 4 equal small squares. These 4 quadrants are as follows - ‘dogs/Pets’, ‘cash cows’, ‘stars’, and ‘question marks’. This graphics setup involved 4 quadrants that divide the company’s product lines or ventures and determine its priorities in the longer run accordingly. Until now, we have discovered that the BCG Growth-Share Matrix Model discovers long-term strategies for a company with the help of a graphical setup.

(Read also: A Black-scholes Options Pricing Model (BSOPM)) Simply put, the Growth-Share Matrix by BCG aims at offering long-term strategy plans to companies with the help of a graphical representation. Perhaps it is important for companies to recognize which product lines to discontinue, sell, or invest in so as to earn more profit. Often, companies have several product lines that might or might not profit over time. In essence, the matrix tends to measure a company’s units’ value along with its other assets so as to list a particular company’s priorities, and the way it should address them strategically. Today, this matrix model is claimed to be used by Fortune 500 companies who are reputed to have the largest market cap size worldwide.

The BCG matrix is based on a planning strategy that helps companies place their products/assets in a graphical setup, the BCG Matrix model was devised in the year 1968 by the founder of Boston Consulting Group - Bruce Henderson. A management framework, the Growth-Share Matrix by Boston Consulting Group that assists businesses in managing their ventures and determining what priorities they should put first.

Bcg matrix