What labels does the BCG Matrix use to classify products?

What labels does the BCG Matrix use to classify products?

• A. Stars, Cash Cows, Question Marks, Dogs
• B. Leaders, Challengers, Followers, Niche
• C. Growth, Maturity, Decline, Introduction
• D. High, Medium, Low

Answer: (A)

The BCG Matrix classifies products by two dimensions—market growth and relative market share—and uses four labels to describe different positions a product can occupy: Stars, Cash Cows, Question Marks, and Dogs. Stars are high-growth, high-share products that often need substantial investment to maintain growth. Cash Cows are low-growth but high-share products that generate steady cash with little investment. Question Marks have high growth but low share, meaning they require careful analysis and either selective investment to build share or divestment. Dogs are low-growth, low-share products that typically offer limited value and may be candidates for divestment. This labeling helps managers decide where to allocate resources: invest in Stars to sustain them, harvest Cash Cows for cash flow, evaluate and potentially invest in Question Marks to turn them into Stars, and divest Dogs to free up resources. The other options describe different frameworks or broad stages that don’t match the four-category BCG approach.

The BCG Matrix classifies products by two dimensions—market growth and relative market share—and uses four labels to describe different positions a product can occupy: Stars, Cash Cows, Question Marks, and Dogs. Stars are high-growth, high-share products that often need substantial investment to maintain growth. Cash Cows are low-growth but high-share products that generate steady cash with little investment. Question Marks have high growth but low share, meaning they require careful analysis and either selective investment to build share or divestment. Dogs are low-growth, low-share products that typically offer limited value and may be candidates for divestment.

This labeling helps managers decide where to allocate resources: invest in Stars to sustain them, harvest Cash Cows for cash flow, evaluate and potentially invest in Question Marks to turn them into Stars, and divest Dogs to free up resources. The other options describe different frameworks or broad stages that don’t match the four-category BCG approach.