It is a model to relate market share with market growth rate of a product or a business unit. It is also called BCG matrix. Market share is of the product or business unit in industry and growth rate is of the industry itself. It was developed by the Boston Consulting Group in 1968. Till then it has been extensively used in order to formulate and implement the business strategy for many companies. It basically categories the product of the companies according to growth rate and market share and puts them into four categories:
Example: The BCG matrix HUL products can be as follows:
Star: Lux, Sunsilk can be categorized as star product with high market share and high growth rate
Cash Cow: AXE deodorant is a cash cow with high market share but low growth rate of industry.
Dog: Wheel has come out as a low growth rate and low market share product for HUL
Question Mark: Rin can be put into question mark category with high growth rate but low market share.
Hence, this concludes the definition of Growth Share Matrix along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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