What is the BCG growth share matrix?

The Boston Consulting Group (BCG) matrix is a strategic tool designed to aid businesses in making informed decisions about their product portfolios by categorizing offerings into four quadrants: dogs, cash cows, stars, and question marks, based on market share and growth potential. This matrix helps organizations prioritize resource allocation by identifying which products warrant further investment and which should be reconsidered, streamlined, or discontinued. An example of its application can be seen in Apple's product range, where items like the iPhone and AirPods are classified as stars due to their substantial growth and market share, while others like the Apple Studio and HomePod fall into the pets category, indicating low growth and market share. By applying the BCG matrix, companies can enhance their decision-making processes, focus on strategic investments, and adapt to changing market dynamics more effectively.