Star – These are the successful products that are still enjoying low competition and therefore have high growth rates.And when the product does come to the market, it can either be a very successful product (very high margins – a Star) or it can flop (divest – a Dog) There is R&D, product development, marketing and various other costs involved in bring this product to the market. Think of a pharmaceutical company introducing a new drug. Question Marks – These are new products or projects that require lot of cash and investment to make them profitable.In a nutshell, the BCG Matrix segments a portfolio (of products, services, companies, stocks, it doesn’t matter) into 4 different parts.
