Concept of the BCG Matrix:
The Boston Consulting Group (BCG) Matrix is a strategic planning tool developed by the Boston Consulting Group in the 1970s. It helps organizations assess their product portfolio and allocate resources effectively based on market growth and market share.

The BCG Matrix categorizes products into four quadrants based on their relative market share and the market growth rate:

1. Stars:
   • High Market Growth, High Market Share
   • Stars are products that operate in high-growth markets and have a high market share. These products are often market leaders and require substantial investment to maintain or grow their position. They have the potential to become cash cows as the market matures.
2. Cash Cows:
   • Low Market Growth, High Market Share
   • Cash cows are products with a high market share in a low-growth market. They generate more revenue than they require for maintenance, providing a steady cash flow that can be used to support other products in the portfolio, such as stars or question marks.
3. Question Marks:
   • High Market Growth, Low Market Share
   • Also known as “problem children,” question marks operate in high-growth markets but have a low market share. They consume a lot of resources but generate low returns. The company must decide whether to invest heavily to increase their market share or divest them.
4. Dogs:
   • Low Market Growth, Low Market Share
   • Dogs are products with low market share in low-growth markets. They may generate just enough revenue to maintain themselves but are not considered viable for long-term growth. Companies typically divest or discontinue these products to free up resources for more promising areas.

Importance:
The BCG Matrix helps companies like Bonus Oil Plantation analyze their product portfolio to determine which products should receive more investment, which ones should be maintained for cash generation, and which ones should be divested. This strategic tool aids in resource allocation, ensuring that the company invests in products that align with its long-term goals and market opportunities.