bcg-matrixlisted

# BCG Growth-Share Matrix ## Overview Maps each business unit on a 2×2 grid of market growth rate vs. relative market share, revealing which units generate cash, which absorb it, and which to invest in, harvest, or exit. Four quadrants: **Stars** (invest), **Cash Cows** (harvest), **Question Marks** (binary decide), **Dogs** (exit or hold minimally). Rests on two empirical anchors: experience curve (high share = lowest cost) and industry life cycle (high growth demands reinvestment; maturity throws off cash). Composes with: [`porters-five-forces`](../porters-five-forces/SKILL.md) to define industry boundary first · [`swot-analysis`](../swot-analysis/SKILL.md) for internal-capability depth · [`ansoff-matrix`](../ansoff-matrix/SKILL.md) to set growth direction for units worth investing in. ## When to Use - Firm operates **≥ 3 distinct business units** competing for a shared capital pool - Annual **strategy or budget reviews** need a forcing function for prioritization - **PE/VC portfolio** requires a quick health-read across holdings; M&A teams assessing retain vs. divest - **AI capital reallocation:** deciding which units to harvest to fund AI capex / AI-native bets, and whether an AI unit is a true Star or an expensive Question Mark amid AI-native competition **When NOT to use:** single-product startup · highly interdependent units where divesting a Dog may destroy a Cash Cow · market in technology transition with unreliable growth data · firm-level competitive analysis