The Boston Consulting Group (BCG) Matrix is a strategic planning tool that helps businesses analyse their product portfolio and allocate resources effectively.

Developed by the Boston Consulting Group in the 1970s, the matrix classifies a company’s products or business units into four categories: Stars, Cash Cows, Question Marks, and Dogs. These categories are determined based on two factors: market growth rate (indicative of the market’s attractiveness) and relative market share (a measure of competitiveness). The BCG Matrix provides a clear visual representation of where a business stands in terms of product performance and market positioning.

When should I use it with a mentoring client?

The BCG Matrix is typically used by businesses during strategic planning, particularly when evaluating their portfolio of products or business units. It is helpful:

• Before launching new products to understand potential market positioning.
• During resource allocation to determine where to focus investments for growth or optimization.
• For product lifecycle management to identify when to grow, maintain, or phase out products.
• In times of restructuring or diversification to decide which products or units to retain, divest, or expand.

It is especially relevant for businesses operating in multiple markets or offering a wide range of products.

Download the below PDF for more information and a client template.