Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Companies should significantly invest in these “stars” as they have high future potential. Companies should milk these “cash cows” for cash to reinvest. The matrix reveals two factors that companies should consider when deciding where to invest-company competitiveness, and market attractiveness-with relative market share and growth rate as the underlying drivers of these factors.Įach of the four quadrants represents a specific combination of relative market share, and growth: These high growth rates then signal which markets have the most growth potential. Ultimately, the market leader obtains a self-reinforcing cost advantage that competitors find difficult to replicate. The growth share matrix was built on the logic that market leadership results in sustainable superior returns. Technology, Media, and Telecommunications.
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