The BCG Matrix categorizes products into which four categories?

• A. Dogs, Stars, Cash Cows, Question Marks
• B. Stars, Cash Cows, Question Marks, Dogs
• C. Cash Cows, Stars, Question Marks, Dogs
• D. Question Marks, Dogs, Stars, Cash Cows

Answer: (B)

The main idea is that the BCG Matrix classifies products by how fast the market is growing and how large the company’s share is in that market. This yields four categories: Stars are in rapidly growing markets and have a high relative share, so they typically need significant investment to sustain growth. Cash Cows are in slow-growing markets but with a high share, producing steady, cash-rich profits with relatively little investment. Question Marks (or Problem Children) operate in high-growth markets but have a low share, meaning they require careful evaluation to decide whether to invest to grow share or divest. Dogs are in low-growth markets with low share and often offer limited prospects, sometimes leading to divestment unless they serve a strategic purpose.