Which type of product is classified as a 'star' in the BCG Matrix?

In the BCG Matrix, a 'star' represents a product that has both a high growth rate and a high market share. This positioning indicates that the product is performing well in a rapidly growing market, which often signifies significant investment opportunities and profitability potential. 'Stars' are typically leaders in their segment, which allows them to generate substantial revenue, but they also require continued investment to maintain their competitive edge and to capitalize on growth opportunities.

Being in a high growth market means that this product is positioned to expand and capture even more market share, while having a high market share benefits the product by providing economies of scale, greater brand loyalty, and inherent advantages in market power. This combination allows companies to reinvest in the product to ensure it stays competitive and can evolve as market conditions change. Therefore, identifying and supporting 'star' products is crucial for long-term business strategy and success in the marketplace.