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“Give me a lever and a place to stand, and I’ll move the world.”
Archimedes

The growth share matrix
is a framework first developed by the Boston Consulting Group (BCG) in the 1960s to help companies think about the priority (and resources) that they should give to their different businesses. Also known as the Boston matrix, it puts each of a firm’s businesses into one of four categories. The categories were all given memorable names – cash cow, star, dog and question mark—which helped to push them into the collective consciousness of managers all over the world.

The two axes of the matrix are relative market share (or the ability to generate cash) and growth (or the need for cash).

• Cash cows are businesses that have a high market share (and are therefore generating lots of cash) but low growth prospects (and therefore a low need for cash). They are often in mature industries that are about to fall into decline.

• Stars have high growth prospects and a high market share.

• Question marks have high growth prospects but a comparatively low market share (and have also been known as wild cats).

• Dogs, by deduction, are low on both growth prospects and market share.

The conclusions drawn from such an analysis are to transfer the surplus cash from a conglomerate’s cash cows to the stars and the question marks, and to close down or sell off the dogs. In the end, question marks reveal themselves as either dogs or stars, and cash cows become so drained of finance that they inevitably turn into dogs.