BCG Matrix

COMSATS UNIVERSITY ISLAMABAD

INTRODUCTION TO MANAGEMENT

ASSIGNMENT # 3

CLASS: BSE-4B

SUBMITTED TO: Mam Sadia Arif

SUBMITTED BY:

SAIF-UR-REHMAN (FA20-BSE-092)

, Question: Explain the BCG Matrix with an industry example.


BCG Matrix
BCG matrix (also referred to as Growth-Share Matrix) is a portfolio planning model used to
analyse the products in the business’s portfolio according to their growth and relative market
share.

Relative Market Share = SBU Sales this year leading competitors sales this year.
Market Growth Rate = Industry sales this year - Industry Sales last


The model is based on the observation that a company’s business units can be classified into
four categories:

❖ Stars
❖ Cash Cows
❖ Question Marks
❖ Dogs


Stars
Stars represent business units having large market share in a fast growing industry.

Cash Cows
Cash Cows represents business units having a large market share in a mature, slow growing
industry.

Question Marks
Question marks represent business units having low relative market share and located in a high
growth industry.

Dogs
Dogs represent businesses having weak market shares in low-growth markets