BCG matrix example

What it shows

A growth-share (BCG) matrix after Henderson (1970). Relative market share runs along the horizontal axis on a log scale, with high share on the left as in BCG’s own figure, and market growth rate runs up the vertical axis. Lines at a relative market share of 1 and growth of 10% a year divide the four quadrants. Henderson’s own word for the dogs is “pets”.

Four product lines of Northfield Coffee Roasters, a fictional specialty roaster, are plotted as circles whose area is proportional to annual revenue.

How to read it

1. 1

   Relative market share is a line’s market share divided by its largest competitor’s. Anything right of 1 trails a bigger rival.

2. 2

   Cash cow: wholesale beans, with a relative market share of 1.1 (a slight regional lead) in a market growing 3% a year. At $6.0M it is the largest circle.

3. 3

   Star: the coffee subscription, at a relative market share of 1.4 in a market growing 16% a year, with revenue of $2.4M.

4. 4

   Question mark: cold brew concentrate, new this year, at a relative market share of 0.3 in a market growing 19% a year, with revenue of $0.6M.

5. 5

   Dog: the four cafes, at a relative market share of 0.4 in a market growing 2% a year, with revenue of $1.8M.

The numbers behind it

• Wholesale beans: relative market share 1.1, market growth rate 3%, $6.0M a year.
• Coffee subscription: relative market share 1.4, market growth rate 16%, $2.4M a year.
• Cold brew concentrate (launched this year): relative market share 0.3, market growth rate 19%, $0.6M a year.
• Cafes (4): relative market share 0.4, market growth rate 2%, $1.8M a year.
• Dividing lines: a relative market share of 1 and a market growth rate of 10% a year. Circle area is proportional to revenue.

Ways to use it in teaching

• Plot a real company’s divisions from its annual report, then argue where each circle should move next.

• Discuss Henderson’s balanced portfolio: which line here should fund which, and what would happen if the cash cow were milked too hard.

• Point out the axis direction. Many redrawn versions, including the lead image of Wikipedia’s growth-share matrix article, put high share on the right, so students should check a chart’s convention before reading it.

• The cafes are a dog here, but a strength in the SWOT analysis example and the stage for Northfield’s tastings in the TOWS matrix. Ask whether a line that makes little cash can still earn its place, and what the matrix cannot see.

Sources

• Growth–share matrix. (n.d.). In Wikipedia. Retrieved October 19, 2026, from https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix
• Henderson, B. D. (1970). The product portfolio. Boston Consulting Group. https://www.bcg.com/publications/1970/strategy-the-product-portfolio