BCGmatriisi

BCGmatriisi, commonly referred to in English as the BCG matrix, is a strategic portfolio analysis framework developed by the Boston Consulting Group in the 1960s. It helps organizations assess their portfolio of business units or products by placing each on a two-dimensional grid defined by relative market share and market growth. Relative market share compares a unit’s or product’s market share to that of the largest competitor, while market growth rate tracks the overall expansion of the market. The grid yields four quadrants: Stars, Question Marks, Cash Cows and Dogs.

Stars are high-growth, high-share entities that typically require substantial investment to maintain leadership. Question Marks (also called problem children) have high growth but low share and risk becoming Stars or failing to gain traction. Cash Cows generate significant cash with low growth and are often used to fund other initiatives. Dogs have low growth and low share and are candidates for divestment or repositioning. The matrix therefore supports portfolio decisions such as where to invest, harvest or divest.

Critics note that the BCGmatriisi is a simplification. It assumes that market growth and relative share drive profitability, and it treats units as independent. It provides a static snapshot and may overlook synergies, competitive dynamics, brand value, and profitability nuances. Accurate classification depends on reliable data and context, and many organizations supplement the matrix with additional tools and qualitative assessment when shaping strategy.