Boston Consulting Group (BCG) Matrix (DP IB Business Management)

Cash cows are products with a high market share in a mature market (the entire market is no longer growing)

They generate significant positive cash flow but have low growth potential

The business invests minimal resources in cash cows as they are seen as stable sources of income

Marketing efforts focus on maintaining their market share and profitability

Cash cows are valuable assets and can be used to fund the development of new products

Problem child or question mark products have a low market share in a high-growth market

These products have the potential to become stars if the company invests in their development

There is often a negative cash flow as businesses usually invest in problem child products to increase their market share and turn them into stars

If the investment does not result in growing the business may discontinue the product

Marketing efforts focus on increasing their market share and brand recognition

Star products have a high market share in a high-growth market

The company typically invests in stars to maintain or increase their market share

They generate significant positive cash flow and have the potential for continued growth

Marketing efforts focus on building brand recognition, increasing market share, and maintaining profitability

Stars are valuable assets and the business should focus on maximising their potential

Dog products have a low market share in a low-growth market

They generate little revenue for the company and have no growth potential

Businesses often move away (divest) from these to focus on more profitable products

Marketing efforts for dog products are minimal or zero