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Relative market share

High Low

High

Star Question mark

Break even Negative cash flow

Market
growth

Cash cow Dog

Positive cash flow Break even or

negative cash flow

Low

Source: Adapted from Drummond et al, (2003, p.97) Strategic Marketing:

nd
Planning and Control, 2 Edition, Oxford: Butterrworth-Heinemann

The BCG model identifies four categories within the matrix; questions

marks, stars, cash cows and dogs. Question marks are new businesses,
products, services or brands that have been introduced into the portfolio

because of the high market growth potential and need a large amount of
money to establish it in the market place but as yet generate no income.
Stars are established in the market place and have a achieved a high

market growth rate as well as high market share and are more balanced
in relation to money generated and used. Cash cows are very much at the

mature stage of their lifecycle and generate more money than is used to
sustain the position of high market share in a low growth market. Dogs on
the other hand have a low market share as well as very little market

growth. The strategy here may be to harvest this for cash or disinvest.

Therefore, the aim of the corporate planner is to allocate resources,
especially financial resources, to maintain a balanced portfolio with many