# BCG Matrix

> A portfolio-analysis framework developed by the Boston Consulting Group in 1970 that classifies business units along two axes — market growth rate and relative market share — producing four quadrants: Stars, Cash Cows, Question Marks, and Dogs.

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## Definition

A portfolio-analysis framework developed by the Boston Consulting Group in 1970 that classifies business units along two axes — market growth rate and relative market share — producing four quadrants: Stars, Cash Cows, Question Marks, and Dogs. Each quadrant implies a different capital-allocation strategy: invest in Stars, harvest Cash Cows, decide aggressively on Question Marks, divest Dogs. The matrix is criticized for oversimplifying competitive dynamics, but it remains a useful first cut for multi-product companies and PE-style portfolio reviews.


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