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There are lines available in the business model as  markets . So the matrix is used to analyze the products based on their growth and market share in the business portfolio . By dividing products into major groups , the matrix will help companies invest more wisely and effectively in product categories in the market . The tool also helps predict the impact of investments on future cash flows and profits . The advertising matrix is divided into squares including stars, cash, cows, dogs, and question marks . where each square is divided into two columns.

Vertical axis and horizontal axis respectively . The vertical axis Job Function Email List the company 's market share and the horizontal axis represents market growth rate . Based on these two criteria companies will evaluate and propose strategies to liquidate investments or exit the market . Specifically, each square is defined as the following matrix star stage. Products with high market share and good growth potential will be called rising stars. For these products to appear in star categories , they need to have significant market share and bring a lot of profits to the company. High growth potential can promote cash flow.

Cash flow increases . Over time as the market develops these stars become cash cows with huge market shares in low growth markets . These cows are milked to focus funds on developing other innovative products to create new stars. For example , products equipped with Apple chips continue to set sales records and attract the attention of the entire market with their excellent performance, becoming a rising star. Matrix money tree stage . A product with little growth potential but a large market share will be called a cash cow.




With significant ROI but operating in saturated markets lacking innovation and growth . These products generate more money than they consume . Therefore these products are often used to provide resources for other ongoing development activities including star and question mark products . Matrix dog stage dog. Products in this segment will be product groups with smaller market shares and operating in markets with lower growth rates . They are called dogs because these products received a lot of investment but still.