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1 template · Matrix

BCG Matrix Examples

The BCG matrix (Growth-Share Matrix) organizes a company's product lines or business units into four quadrants based on market growth rate and relative market share — giving strategists a fast read on where to invest, harvest, or divest.

Standard 2×2 / N×M quadrant conventionEngine schematex-matrixExport SVG · PNG · PDF
How to

How to use a matrix template.

  1. 01List your business units or products

    Provide product names along with approximate market growth rate and your relative market share compared to the largest competitor.

  2. 02ChatDiagram places each unit in a quadrant

    Products with high share in high-growth markets land in Stars; high share in low-growth in Cash Cows; low share in high-growth in Question Marks; low share in low-growth in Dogs.

  3. 03Adjust bubble sizes by revenue or profit

    Ask ChatDiagram to size each bubble by annual revenue or contribution margin to show relative financial importance.

  4. 04Add strategic recommendation labels

    Annotate each quadrant with invest/hold/harvest/divest recommendations aligned to your business context.

  5. 05Export for your strategy deck

    Download as PNG or SVG and drop into your consulting presentation, business-school case write-up, or board deck.

FAQ

Questions about matrix templates

What are the four quadrants of the BCG matrix?

Stars (high growth, high share — invest to maintain), Cash Cows (low growth, high share — milk for funds), Question Marks (high growth, low share — decide to invest or cut), and Dogs (low growth, low share — consider divesting).

What is the threshold for 'high' market growth in a BCG matrix?

The original BCG framework used 10% annual market growth as the dividing line. In practice, teams often use industry-specific benchmarks or the company's own growth rate as a baseline.

How do I calculate relative market share for a BCG matrix?

Divide your product's market share by the market share of your largest competitor. A ratio above 1.0 means you lead the market; below 1.0 means you are a follower.

Is the BCG matrix still relevant today?

Yes, with caveats. It is a quick communication tool but oversimplifies competitive dynamics. Complement it with deeper analysis (Porter's Five Forces, customer lifetime value) for real strategic decisions.

Can I use a BCG matrix for a SaaS product portfolio?

Absolutely. Replace revenue bubbles with ARR, use category growth rates, and track relative NPS or retention rate as a proxy for competitive strength where market-share data is hard to obtain.