The BCG Growth-Share Matrix helps in resource allocation by categorizing a company's product lines into four categories based on their market growth rate and relative market share. These categories are: Cash Cows, Stars, Question Marks, and Dogs. Cash Cows have high market share in a slow-growing industry and generate more cash than they consume. Stars are in high growth markets and have high market share. Question Marks are in high growth markets but have low market share. Dogs have low market share in a slow-growing industry. By understanding where each product line falls, companies can allocate resources more effectively, investing in promising areas and divesting in others.
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