The correct answer is -Industry growth rate and relative market share Key Points The BCG Matrix is a strategic tool used to analyze a company’s product portfolio and allocate resources effectively. It is based on two key parameters: Industry Growth Rate: This represents the growth potential of the industry or market in which the business operates. Relative Market Share: This measures the company’s market share relative to its largest competitor, reflecting competitive strength. The matrix categorizes products or business units into four quadrants: Stars, Cash Cows, Question Marks, and Dogs.