Boston Consulting Group Matrix
The horizontal axis represents the market share relative to the industry
leader. The leader will always be displayed on the far left of the chart.
The vertical axis represents the market growth rate for the industry.
The cash flow situation is different in each quadrant, which leads to the following
Stars: High-growth, high-share businesses that are likely to
generate enough cash to be self-sustaining.
Cash cows: Low-growth, high-share businesses that generate excess cash
that can be used to support other business units (especially question marks)
and R & D efforts.
Question marks: High-growth, low-share businesses that normally require
a lot of cash to maintain or increase their share. Management must often either
invest additional cash to convert these business units into stars or divest
themselves of the offering.
Dogs: Low-growth, low-share businesses that are often cash traps.
Your enterprise lies in the question mark cell of the matrix.
Maintaining or increasing your market share will require a heavy investment.
All new products and services begin here. Consider investing additional cash
to convert this business to a star.