Cash Cows typically generate cash in excess of the amount needed to maintain the business. This means that the market has already matured, and that the business is well established and positioned within the market. These categories are Cash Cows, Stars, Question Marks, and Dogs.Ĭash Cows represent business units or product lines (businesses more generically) that enjoy a large market share within a market which is experiencing low market growth. Market share describes the percentage of the overall market that a company’s business unit or product offerings enjoy.Ī business unit or product line is categorized based on the quadrant of the matrix in which it resides. Eventually, all markets mature and as they new revenues sources diminish. New markets continue to growth and expand over time, presenting additional opportunities for revenue that can be shared among market participants.

Market growth describes the maturity of a market.

The BCG Matrix plots business units or product offerings along two axis the first is market growth, the second is market share. Companies can use this simple 2 x 2 matrix as an analytical tool in portfolio analysis, strategic management, product management, and brand marketing. The BCG Matrix was developed by the Boston Consulting Group in 1986 in order to evaluate and analyze the business units and product offerings of corporations.