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.
