The BCG Matrix (Boston Consulting Group Matrix) is a strategic tool used by businesses to evaluate their product portfolio and make decisions about resource allocation. It helps companies categorize their products or business units based on market growth rate and market share. The matrix consists of four quadrants:

Stars: Products or business units with high market share in a high-growth market. These are seen as leaders in the market and require significant investment to maintain their position but also offer high returns.

Cash Cows: Products with a high market share in a low-growth market. They generate steady cash flow with little need for further investment, which can be used to support other products in the portfolio.

Question Marks: Products in high-growth markets but with low market share. These are uncertain investments and can either grow into Stars or fail. They require close attention and resources to try to increase market share.

Dogs: Products with low market share in low-growth markets. These typically offer little profit and may be candidates for divestment or discontinuation.

The BCG Matrix helps companies prioritize their investments by focusing on the most promising products and phasing out underperforming ones.