Explain the concept of Product Portfolio. Discuss the BCG-growth share matrix that you are familiar with

The product portfolio is a collection of all the products or product lines offered by a company. The BCG (Boston Consulting Group) Growth-Share Matrix is a strategic tool for analyzing a company’s product portfolio.

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It categorizes products into four quadrants.

  1. **Stars**: High-growth, high-market share products. These require significant investment but also generate substantial returns. Example: A new tech product that’s rapidly gaining market share.
  • **Question Marks (or Problem Child)**: High-growth, low-market share products. These need more investment to see if they can become stars or might be discontinued. Example: A new product in a growing market, but facing stiff competition.
  • **Cash Cows**: Low-growth, high-market share products. These generate steady income and are used to support other products. Example: An established, market-leading product in a mature industry.
  • **Dogs**: Low-growth, low-market share products. These are usually phased out unless they serve a strategic purpose. Example: An outdated product in a declining market.

The BCG matrix helps companies allocate resources and make strategic decisions about their product portfolio.

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