Classifies products according to two dimensions:

- Market growth

- Market share

Organisations aim to have a “balanced portfolio” ideally with cash cows where they can reap the profits and stars that will grow into cash cows

These tools can be used to analyse the portfolio of products a business offers

Businesses need to ensure that they have sufficient new products coming onto the market for the future

New products are funded by profits from products in the maturity phase of the Product Life Cycle (PLC )/ cash cows