Free BCG Matrix PowerPoint Template

Portfolio Strategy with the BCG Matrix

The BCG matrix is one of the most influential frameworks in corporate strategy. Developed by Boston Consulting Group founder Bruce Henderson in 1970, it provides a systematic way to analyze and manage a portfolio of business units or products.

The framework plots products on two dimensions: relative market share (your share divided by the largest competitor's share) and market growth rate. The resulting four quadrants—Stars, Cash Cows, Question Marks, and Dogs—each carry distinct strategic implications for investment and resource allocation.

Beyond the Textbook 2x2

In textbooks, the BCG matrix is a clean 2x2 grid with four labels. In consulting decks, it looks different. The version partners expect shows bubbles sized by revenue, plotted on real axes with actual data, and color-coded by segment. The textbook version communicates a concept; the consulting version drives a portfolio decision.

Our template supports both approaches, but we recommend the bubble chart overlay for any serious strategic discussion. Three dimensions of data—relative share, growth rate, and revenue—on a single visual.

Understanding the Four Quadrants

Stars (High Share, High Growth) Products with strong market position in rapidly growing markets. Stars generate revenue but also require significant investment to maintain leadership as the market expands. The goal is to invest to defend position until market growth slows, at which point Stars become Cash Cows.

Cash Cows (High Share, Low Growth) Products with dominant position in mature markets. Cash Cows generate stable, predictable profits with minimal reinvestment. They fund the company's investments in Stars and promising Question Marks. Milk them for cash, but don't neglect them entirely.

Question Marks (Low Share, High Growth) Products with small market share in fast-growing markets. Question Marks are strategic bets—they could become Stars with investment or Dogs if the market matures before you gain share. The key decision: invest heavily to capture share, or divest before throwing good money after bad.

Dogs (Low Share, Low Growth) Products with weak position in stagnant markets. Dogs tie up resources that could be deployed elsewhere. The typical prescription is divest, liquidate, or harvest for remaining cash flow. But some Dogs serve strategic purposes (blocking competitors, completing a product line) that justify their continued existence.

The Critical Importance of Market Definition

The most consequential decision in BCG analysis is market definition. If you define "market" too broadly, every product looks like it has low relative share. Too narrowly, and you inflate share figures.

A snack brand's relative share in "all food" versus "premium health snacks" will produce completely different quadrant placements. The right market definition is the one your product actually competes in—where a customer would substitute between alternatives.

Get this wrong and the entire matrix is misleading.

Relative vs. Absolute Market Share

The x-axis must show relative market share, not absolute share. This distinction is critical.

A product with 30% market share sounds strong. But if the market leader has 45%, your relative share is only 0.67x—that puts you in the left half of the matrix (Question Mark or Dog territory).

Relative share (your share divided by the largest competitor's) captures competitive advantage, not just scale. A $50M product in a $100M market has higher relative share than a $500M product in a $10B market, even though the latter generates 10x more revenue.

Calibrating Growth Rate Thresholds

The dividing line between "high growth" and "low growth" isn't fixed. It should reflect industry context:

• Consumer packaged goods: 5% might be the threshold
• Technology/SaaS: 15-20% might be appropriate
• General benchmark: Industry average or GDP growth rate

Don't use arbitrary midpoints. A 10% growth rate looks different in a 3% growth industry versus a 25% growth market.

Building the Bubble Chart Overlay

The consulting-grade approach layers a bubble chart on top of a quadrant grid:

1. Insert a bubble chart with relative market share on x-axis, growth rate on y-axis
2. Set bubble size to represent revenue or profit
3. Add quadrant lines using shapes, positioned at your threshold values
4. Remove chart gridlines and let the quadrant grid provide structure
5. Color bubbles to match their quadrant at 70% opacity (so overlapping bubbles stay readable)
6. Add labels identifying each product or business unit
7. Include a legend showing what bubble size represents

This transforms the static 2x2 into a dynamic visualization that shows relative position, growth context, and financial scale simultaneously.

Writing Portfolio Action Titles

Your slide title should state the portfolio recommendation, not the framework name.

Weak titles:

• "BCG Matrix"
• "Product Portfolio Analysis"

Strong titles:

• "Redirect QuickClean cash flow to FreshBite and ZestBrew to capture growth in healthy snacks"
• "Concentrate 60% of engineering hires on FormFlow; fund AIPilot as a capped venture bet"
• "Harvest LegacyBridge margins to fund Star and Question Mark investments"

The title tells the executive what to do with the portfolio, not just what the chart shows.

Showing Movement Over Time

The most useful portfolio slides show movement over time—plot the same products at Year 0 and Year 3 with arrows showing trajectory.

A Question Mark trending toward Star tells a completely different investment story than one drifting toward Dog. Movement reveals whether your strategy is working and which bets are paying off.

For real-world examples and detailed portfolio analysis walkthroughs, see our BCG Matrix Examples.

For related strategy frameworks, see our Ansoff matrix template, competitive analysis template, and SWOT analysis template. For more on portfolio strategy, explore our Strategic Frameworks Guide.