Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child



Strategic Portfolio Management
Knowledge Center

Translate

Forum
18
R.C. Natarajan
Professor of Marketing, India

Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child

The BCG matrix's underlying assumptions are these:
(i) High market growth rate, by virtue of attracting competition, entails high resource usage for the firm;
(ii) High relative market share, by virtue of economies of scale, experience curve and power vis-a-vis channels and supplier of raw materials enables the firm to generate more resources.
Hence, the two axes can be better understood as "resource use" and "resource generation".
This makes it easy to understand that:
- A high-use low-generation is a problem child (or question mark, as called in many textbooks) that requires hand-holding and nurturing;
- A high use high-generation is a star that warrants continued support;
- A low use low-generation is a dog that can either be left alone or be divested; and
- A low-use high-generation is a cash cow that can be harvested.
Unfortunately, not many textbooks explain why the four quadrants are named so.
 

Rating

 
-3
Nikhil Jain, India
 

The Meaning of Star, Cow, Dog and Question Marks

Dogs should be kicked out, cows should be milked, ...

 
0
Dennis Ngoma
Student (MBA), Zambia
 

BCG Matrix - Meaning of Dogs

In normal life, you keep a dog to keep you company...

   

More on Strategic Portfolio Management:
Summary
Discuss
10% Limit in Market Growth in BCG Matrix
Example BCG Matrix: Coca Cola & Pepsi Cola
Company Strategy if Lacking Question Marks?
How do I Place my Products / Services in the BCG?
👀Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child
BCG Matrix is useless!
🔥Modified BCG Matrix 2.0
The BCG Matrix and Synergy Effects
BCG Matrix Star Strategies and Examples
Differences Between BCG Matrix and Ansoff Matrix
How to Calculate the Relative Market Share in BCG Matrix?
Advantages and Disadvantages of Portfolio Planning Tools
Application of BCG Matrix in Forestry
BCG Matrix in Emerging or Fragmented Markets
BCG Matrix: Can Dogs be More Lucrative than Cash Cows?
Distinction Between PLC and BCG Matrix?
Direction of Arrows in the BCG Matrix
Assumptions of the BCG Matrix
BCG Matrix Question Mark Strategies and Examples
The 4 BCG Categories are not Always Stages
Cash Cow Strategies and Examples
BCG Matrix for Start-ups
Special Interest Group

Do you have a keen interest in Strategic Portfolio Management? Become our SIG Leader

Strategic Portfolio Management
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2022 12manage - The Executive Fast Track. V15.8 - Last updated: 1-12-2022. All names of their owners.