Place the mouse over any of the sections of the matrix to learn more about what type of products or services are represented by that section.
Stars
With a large share of a high growth market, stars both use and generate large amounts of cash. The amount of money coming in is roughly equivalent to the amount being consumed. However, if a star can maintain its market share, it will become a cash cow when the market growth rate begins to level or decline.
Cows
Cows, or cash cows, contain a large market share in a slow growing, or mature, industry. They require very little investment relative to the amount of cash generated and are often the foundation of a company, as they provide the funds needed to invest in other business units.
Problem Child
With a small share of a high growth market, these products or services have the potential to become stars. However, any attempt to do so will require high resource investment, and the results are uncertain.
Dogs
With a small market share in a mature (low growth) industry, dogs tie up capital that could be better used elsewhere. These units are often the focus of expensive, rarely successful "turn around" plans. However, barring some specific strategic function or significant income generation, liquidation is often the best approach.