The growth-share matrix asks two questions about each product: is its market growing fast, and does it lead that market? Growth signals how much cash a product needs. Relative share signals how much cash it can generate.
- Stars: invest to grow
- A market leader in a fast-growing market. Earns a lot and needs a lot of cash to keep pace with the market.
- Cash Cows: harvest and defend
- A market leader in a slow-growing or mature market. Generates more cash than it needs.
- Question Marks: invest selectively or exit
- A small player in a fast-growing market. Consumes cash and does not yet earn much back.
- Dogs: divest, reposition, or keep lean
- A small player in a slow-growing market. Earns little and ties up time and attention.