As these products generate cash flow, they are highly guarded. Cash cows are therefore well established, and do not require much investment (marketing expenditures) to continue to generate cash flow. The model suggests that continued investment in these “stars” will eventually lead to these products in becoming “cash cows” “Cash Cows” are products which have a large market share in a mature industry. Where these stars generate cash, the nature of the market mandates the business to invest cash in order to maintain the product’s market share. The model described “Stars” as those which enjoy a large market share in a rapidly growing industry. The Matrix was said to create further growth opportunities for the firm if more resources were invested in those products which generated positive cash flows.

Henderson (1970) first presented the concept of the Product Portfolio Matrix, the framework of which categorized products within a company's portfolio as “stars”, “cash cows”, “dogs”, or “question marks”.Īlso called the Growth-Share Matrix, the model presented by Henderson (1970), organized the products as per their respective growth rate, market share, and positive or negative cash flow. Concept Overview The Boston Consulting Group (BCG) Matrix was initially designed in the works of a leading management consulting firm, the Boston Consulting Group. Where alternative versions of the matrix have come up in recent studies, the traditional BCG Matrix continues to be popular and this paper intends to evaluate whether the support for the model is justified or needs to be rectified. I opted to evaluate the Boston Consulting Group model, which is an established tool of the strategic management field, used frequently in marketing circles to optimize product mix. He suggests that well established marketing concepts should be re-evaluated from time to time, to determine if the marketing studies for that area are applicable to current practice, and revisit the functional, intellectual, ethical, and political relevance of the said concept. In his book Marketing:A Critical Introduction, Hackley presents a framework for analysing marketing models.

Marketing Critique: BCG Matrix Your Name Here Table of Contents Introduction3 Concept Overview3 Functional Critique5 Intellectual Critique6 Ethical Critique7 Political Critique8 Conclusion8 Bibliography9 Introduction This paper will attempt to provide a broad critique of the Boston Consulting Group Matrix in light of the ideas of Hackley (2009).

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