They are considered 'dogs' because they do not generate much cash for the company and require a lot of investment to maintain their market position.Įxamples of dogs in the BCG matrix could be a product line that has a low market share and operates in a low-growth industry, such as a DVD player in a market where streaming services are dominant. In summary, a star represents a business unit or product that generates a lot of cash flow for the company and has a high growth potential with a relatively low investment required to maintain its position in the market.Ī Dog in the BCG matrix is a business unit or product that has a low market share in a low-growth market.

High-demand products such as electric vehicles in the automobile industry, or renewable energy solutions in the energy industry are some other examples. Another example could be a business unit that operates in a growing market and has a large market share such as a fast food chain in a booming city.Īnother example of Star could be a software as a service (SaaS) company that has a high market share in a fast-growing cloud computing market. They are considered 'cash cows' because they generate a lot of cash for the company and require little investment to maintain their market position.Įxamples of stars in the BCG matrix could be a product line that has a high market share and operates in a high-growth industry, such as a smartphone in a market where the demand for smartphones is increasing rapidly. They are considered 'cash cows' because they generate a lot of cash for the company but have little potential for future growth.Ī Star in the BCG matrix is a business unit or product that has a high market share in a high-growth market. Cash cows: These are business units or products that have a high market share in a low-growth market.

They are considered 'question marks' because they have the potential to become stars if the company can increase their market share.

Question marks: These are business units or products that have a low market share in a high-growth market.

They are considered 'dogs' because they do not generate much cash for the company and require a lot of investment to maintain their market position.

Dogs: These are business units or products that have a low market share in a low-growth market.

They are considered 'cash cows' because they generate a lot of cash for the company and require little investment to maintain their market position.

Stars: These are business units or products that have a high market share in a high-growth market.

The matrix is divided into four quadrants: It plots a company's business units or products on a matrix based on their relative market share and market growth rate.

A BCG matrix is a strategic planning tool used to evaluate the relative market position of a company's business units or product lines.

Bcg matrix example