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Boston Matrix

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Yomi Amv
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32 views1 page

Boston Matrix

Uploaded by

Yomi Amv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BOSTON MATRIX

The Boston Matrix, also known as the growth-share matrix, is a framework used by businesses to
analyze their product portfolios and determine how to allocate resources based on their products'
potential for growth and market share. It was developed by the Boston Consulting Group in the
early 1970s and has since become a widely-used tool in business strategy.
The Boston Matrix is made up of four quadrants, each representing a different category of
product based on its relative market share and market growth rate. The four categories are:
Stars, Question Marks, Cash Cows, and Dogs.

Stars are products that have a high market share in a growing market. These products
require a lot of investment to maintain their growth, but have the potential to become Cash
Cows if they can maintain their market share as the market matures.

Question Marks are products that have a low market share in a growing market. These
products require a lot of investment to try and increase their market share, and if
successful, they may become Stars. However, if they cannot increase their market share,
they may become Dogs.

Cash Cows are products that have a high market share in a mature market. These products
generate a lot of revenue and profits, but do not require much investment to maintain their
market share. This makes them a source of steady income for the business, which can be
used to support other products that require more investment.

Dogs are products that have a low market share in a mature market. These products do not
generate much revenue or profits, and may require investment to maintain their market
share. If they cannot be turned around, they may be discontinued.

The Boston Matrix can be used by businesses to make strategic decisions about their
product portfolios. For example, a business may choose to invest more in their Stars to
maintain their market share and drive further growth, while reducing investment in their
Dogs to focus on more promising products. Alternatively, a business may choose to divest
its Dogs entirely to free up resources for more promising products.

In conclusion, the Boston Matrix is a powerful tool for businesses to analyze their product
portfolios and make strategic decisions about how to allocate resources. By identifying
which products have the greatest potential for growth and market share, businesses can
make informed decisions about where to invest their time and money to maximize their
profits and ensure long-term success.

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