The BCG Matrix classifies business units or products into four categories:
Stars: High market growth and high market share. These units are leaders in their markets but require substantial investment to maintain their position. Question Marks: High market growth but low market share. These units have potential but need significant resources to increase their market share. Cash Cows: Low market growth but high market share. These units generate steady cash flow with minimal investment, often funding other segments. Dogs: Low market growth and low market share. These units may not be worth investing in and could be candidates for divestiture.