Sample BCG matrix · Tala Provisions, Inc.
The BCG matrix places each business unit by market growth and relative market share. Tala Provisions has three units: cafés, wholesale and online. Each plots as a star, cash cow, question mark or dog, and the bubble size is revenue. Change a unit's share and see where it moves. How it's scored
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How the BCG matrix is scored
- For each unit, enter its market's growth rate, its own market share, the largest rival's share and its revenue.
- Relative market share is calculated: the unit's share divided by the largest rival's share.
- A unit is high growth at 10% or more, and high share at 1.0× or more. You can change both thresholds.
- High growth and high share is a star; high growth and low share, a question mark; low growth and high share, a cash cow; low growth and low share, a dog.
Revenue only sizes the bubble. It never moves a unit between quadrants.
Worked example: Tala Provisions
Online plots as a star (relative share 1.50, market growth 22.0%): a fast-growing market where Tala's subscription is ahead of Ambon Roasters. Wholesale is a cash cow (relative share 1.50, market growth 6.0%): a slow market where Tala is the largest specialty supplier in its niche. The cafés are a question mark (relative share 0.40, market growth 14.0%): specialty cafés are growing, but Duyan Coffee Co.'s chain dwarfs Tala's four stores.
| Unit | Revenue | Market growth | Relative share | Quadrant |
|---|---|---|---|---|
| Cafés | ₱42M | 14% | 0.40 | Question mark |
| Wholesale | ₱58M | 6% | 1.50 | Cash cow |
| Online | ₱21M | 22% | 1.50 | Star |
| Total revenue | ₱121M |
The portfolio reads in one line: wholesale funds the business, online is the one to build, and the cafés need a decision.
The thresholds matter. Move the growth line from 10% to the figure your course prefers, and a unit near the line can change quadrant. If yours does, say which threshold you used and why. In a single-business capstone, the units are usually channels or product lines, as Tala's are.
Where it fits
BCG works on business units, so it answers a different question from the company-level IE and SPACE matrices. Its reading backs the online strategy in TOWS (ST-01) and raises the question the café strategy (ST-02) has to answer in the QSPM.
Common mistakes
- Using the unit's own share as relative share. Relative share is the unit's share divided by the largest rival's.
- Dividing by your own share when you are the leader. If your unit is the biggest, the "largest rival" is the next-biggest company.
- Treating "dog" as "close it". A dog can still earn cash or support another unit. Say why you keep or exit it.
FAQs
Why is the high-share line at 1.0?
At 1.0×, the unit is as big as its largest rival. Above it, the unit leads its market. You can change the threshold if your course uses another.
What if the company has only one business?
BCG needs more than one unit to say much. Split by product line or channel, as Tala does, or explain why BCG does not apply.
Where does the market growth figure come from?
An industry report or a sourced estimate. Cite it, because the quadrant depends on it.
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