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#Boston #Model #Power #leadership #industry ##The Boston Consulting Group's (BCG) growth-share matrix is a popular tool for categorizing businesses and making strategic decisions. The matrix plots a company's market share against its growth rate, and divides businesses into four quadrants:
* **Stars:** High market share and high growth. These businesses are cash cows that generate a lot of revenue and are expected to continue to grow.
* **Cash cows:** High market share and low growth. These businesses generate a lot of cash, but are not expected to grow much in the future.
* **Question marks:** Low market share and high growth. These businesses are high-risk, high-reward investments. They may eventually become stars, but they could also fail.
* **Dogs:** Low market share and low growth. These businesses are a drain on resources and should be considered for divestiture.
The Boston Consulting Group recommends that companies allocate their resources according to the following principles:
* **Invest in stars.** These businesses are the future of the company and should be given the resources they need to grow.
* **Milk cash cows.** These businesses generate a lot of cash, but they don't need much investment. The company should use this cash to invest in stars or to fund new initiatives.
* **Invest in question marks.** These businesses have the potential to become stars, but they also have a high risk of failure. The company should carefully evaluate each question mark and decide whether to invest in it or to cut its losses.
* **Divest dogs.** These businesses are a drain on resources and should be sold or closed down.
The Boston Consulting Group's growth-share matrix is a powerful tool that can help companies make strategic decisions. By understanding the different types of businesses in their portfolio, companies can allocate their resources more effectively and improve their long-term growth prospects.
##Additional Resources
* [The Boston Consulting Group's growth-share matrix](https://www.bcg.com/en-us/perspectives/growth-share-matrix)
* [How to use the Boston Consulting Group's growth-share matrix](https://www.investopedia.com/articles/personal-finance/040215/how-use-boston-consulting-groups-growth-share-matrix.asp)
* [The Boston Consulting Group's growth-share matrix: A critical analysis](https://www.strategyand.pwc.com/thought-leadership/growth-share-matrix-critical-analysis.html)
* **Stars:** High market share and high growth. These businesses are cash cows that generate a lot of revenue and are expected to continue to grow.
* **Cash cows:** High market share and low growth. These businesses generate a lot of cash, but are not expected to grow much in the future.
* **Question marks:** Low market share and high growth. These businesses are high-risk, high-reward investments. They may eventually become stars, but they could also fail.
* **Dogs:** Low market share and low growth. These businesses are a drain on resources and should be considered for divestiture.
The Boston Consulting Group recommends that companies allocate their resources according to the following principles:
* **Invest in stars.** These businesses are the future of the company and should be given the resources they need to grow.
* **Milk cash cows.** These businesses generate a lot of cash, but they don't need much investment. The company should use this cash to invest in stars or to fund new initiatives.
* **Invest in question marks.** These businesses have the potential to become stars, but they also have a high risk of failure. The company should carefully evaluate each question mark and decide whether to invest in it or to cut its losses.
* **Divest dogs.** These businesses are a drain on resources and should be sold or closed down.
The Boston Consulting Group's growth-share matrix is a powerful tool that can help companies make strategic decisions. By understanding the different types of businesses in their portfolio, companies can allocate their resources more effectively and improve their long-term growth prospects.
##Additional Resources
* [The Boston Consulting Group's growth-share matrix](https://www.bcg.com/en-us/perspectives/growth-share-matrix)
* [How to use the Boston Consulting Group's growth-share matrix](https://www.investopedia.com/articles/personal-finance/040215/how-use-boston-consulting-groups-growth-share-matrix.asp)
* [The Boston Consulting Group's growth-share matrix: A critical analysis](https://www.strategyand.pwc.com/thought-leadership/growth-share-matrix-critical-analysis.html)
