This is a strategic business tool used to evaluate the strategic position of a business's brand portfolio and its potential.
It categorizes business units (or products) into one of four categories based on their market growth and market share:
- Stars: High market growth, high market share – they are industry leaders and are well-positioned.
- Cash Cows: Low market growth, high market share – they generate more cash than they consume.
- Question Marks: High market growth, low market share – they have potential but may require significant investment to grow market share.
- Dogs: Low market growth, low market share – they might generate enough to maintain themselves but don't promise to be large sources of cash.
This matrix helps businesses allocate resources and is used as an analytical tool in brand marketing, product management, and portfolio analysis.