Growth-Share Matrix Calculator: A Business Portfolio Analysis Tool

The Growth Share Matrix Calculator analyses a company’s product portfolio by plotting each product or business unit based on its relative market share and the overall market’s growth rate. Positioning the products/units into one of four quadrants provides insights into their strategic value and the appropriate resource allocation.

To use the Growth Share Matrix Calculator, you’ll need to provide the following information for each product or business unit:

• Understanding what is a growth-share matrix​

• Current market share
• Market growth rate

The Growth Share Matrix allows you to visualise the performance of your products or business units. Plotting them based on market share and growth allows you to identify high performers, cash cows, problem children, or dogs. This information helps guide your strategic decisions regarding investment, divestment, or restructuring.

The Growth Share Matrix categorises products or business units into four quadrants based on their market growth rate and relative market share:

• Stars: High growth, high market share. These are the leaders in the business and require investment to maintain their market position.
• Cash Cows: Low growth, high market share. These units bring in more cash than required to maintain their market share.
• Question Marks: High growth, low market share. They are potential “stars” and require investment to grow market share.
• Dogs: Low growth, low market share. They may generate enough cash to sustain themselves but do not promise to be large sources of cash.

The four quadrants in the Growth Share Matrix are:

• Stars: High growth, high market share products or business units.
• Cash Cows: Low growth, high market share products or business units.
• Question Marks: High growth, low market share products or business units.
• Dogs: Low growth, low market share products or business units.

The placement of your products/units within the Growth Share Matrix quadrants provides insights for strategic decision-making. Stars require investment to maintain their position, Cash Cows generate cash flow, Problem Children need evaluation and potential investment, and Dogs may need to be divested.

Yes, the Growth Share Matrix can also be a valuable tool for small businesses. By analysing their product or service portfolio, small companies can identify areas of strength, opportunity, and potential challenges. This information helps them make informed decisions about resource allocation, product development, and market positioning.