What is the BCG Matrix?
The BCG Matrix is a basic marketing tool that helps businesses decide which products or services they should focus on and which ones might not be worth their time or money.
It was created by a company called Boston Consulting Group, which is why it’s called the BCG Matrix.
The BCG Matrix helps you answer:
“Which of my products are doing well?”
“Which ones have potential?”
“Which ones should I stop selling?”
How does BCG matrix Work?
The matrix looks at two things for every product or service you offer:
- Market Growth – Is this industry or product category growing?
-
Market Share – How big is your piece of that market compared to competitors?
Using these two things, it divides your products/services into four groups:
| Quadrant | What It Means | What You Should Do |
|---|
| Stars | Growing fast and you’re a top player | Keep investing — they’re your future winners |
| Cash Cows | Not growing much, but you make steady money | Maintain and use the profit to support other areas |
| Question Marks | Growing fast, but you’re not leading yet | Test, improve, and decide if it’s worth growing |
| Dogs | Not growing and you’re not doing well in it | Stop or reduce focus — not worth the effort |
Example (Let’s Say You Own a Business):
Imagine you run a small digital marketing agency. You offer these services:
- WordPress Website Design
- Google Ads Management
- SEO (Search Engine Optimization)
-
Social Media Management
Let’s put them into the BCG Matrix:
- SEO: It’s in demand, and your clients are getting good results. You’re known for it. → Star
- WordPress Websites: Not super exciting anymore, but brings regular income. → Cash Cow
- Google Ads: Growing fast but you haven’t mastered it yet. → Question Mark
-
Social Media Management: Clients don’t ask for it, and it takes too much time. → Dog
Now you know:
- Put more energy into SEO
- Keep WordPress services running
- Decide if Google Ads is worth improving
-
Consider dropping Social Media work
Why Use the BCG Matrix?
It helps you:
- Avoid wasting time on low-performing services
- Focus your efforts where results are better
-
Grow smart instead of just working hard
Q: Do I need a big company to use BCG Matrix?
No. Even freelancers, small businesses, or side hustles can use it.
Q: Do I need lots of data for BCG-Matrix?
Not really. Just basic knowledge of your market and how your offers are doing is enough to start.
Q: Can services be added to this, or just products?
Yes, you can use this for products, services, offers, or even content you’re creating.
The BCG Matrix is like a simple map.
It shows you where your best opportunities are, and where you’re wasting time.
When you understand it, your business decisions become much easier.
No guessing. No overthinking. Just clear direction.
