Ayoa’s BCG Matrix template allows you to analyze product performance, so you can identify which of your products can help you to capitalize on market share growth.
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What is the BCG Matrix template?
Also known as the Boston Matrix or Growth-share Matrix, the BCG Matrix is a strategic planning tool that was originally created by the Boston Consulting Group. This effective framework allows you to analyze a product’s potential to capture market share and generate business growth.
The BCG Matrix requires you to sort your products into four categories:
- Cash cows – Products with a high market share in a slow-growing market
- Dogs – Products with low market share in a slow-growing market
- Question marks – Products with a low market share in a fast-growing market (also known as ‘problem children’)
- Stars – Products with a high market share in a fast-growing market
Why use the BCG Matrix template?
The BCG Matrix template can be useful in many areas of your business including marketing, strategic management and business portfolio analysis. By categorizing each product in your portfolio, you’ll be able to make better decisions about which products you should continue to invest time and money in, and which are no longer worth your investment.
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How to use our BCG Matrix template
Ayoa’s Impact Effort Matrix template is already populated with examples to help you create your own effective action plan. Discover how to use this template below.
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Start by listing your products on individual sticky notes. Depending on your product portfolio, these can either be individual products, product lines or even categories of products (if you have a very large product offering).
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Considering the product performance and current market conditions, plot each sticky note into the relevant quadrant in the template. Each product will need to fall into one of the following categories:
- Cash cows – these are products with a high market share in a slow-growing market. In other words, they provide a steady income and the cash they generate exceeds the amount needed to maintain business.
- Dogs – these have a low market share in a slow-growing market and usually do nothing more than ‘break even’.
- Question marks – these are products with a low market share in a fast-growing market. They have the potential to gain market share and become stars.
- Stars – these typically start off as question marks; they have a high market share in a fast-growing market.
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Now that your products are categorized, you can use this matrix to identify next steps for your product portfolio. Depending on where the product is categorized, ask yourself the following questions:
- Cash cows – How can you capitalize on this product without exhausting it?
- Dogs – How can this product be improved? If it cannot be improved quickly and cheaply, should it be discontinued to prevent draining your resources further?
- Question marks – These products could go either way; they may gain market share and become stars, but they could also fall flat and drop into the dog quadrant. Consider: how can you ascertain whether they are worth the investment required to grow their market share?
- Stars – How much is it costing you to sustain its market share? Does it have a strong likelihood of becoming a cash cow?
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After conducting your analysis, determine the next steps you should take to ensure you’re investing time and money in the right products.
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