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Boston Matrix

Boston Matrix. By Robert Vadas. Function. -The Boston Matrix is a tool for portfolio analysis -The Boston Matrix can be applied to the portfolio of products produced by businesses of a firm or a firm. -Focuses on cash flow from products. General Summary.

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Boston Matrix

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  1. Boston Matrix By Robert Vadas

  2. Function -The Boston Matrix is a tool for portfolio analysis -The Boston Matrix can be applied to the portfolio of products produced by businesses of a firm or a firm. -Focuses on cash flow from products

  3. General Summary -The Boston Consulting group developed this as a tool of portfolio analysis -Portfolio is the collection of businesses or products that make up a business -Can be applied to portfolio of products

  4. Chart

  5. Four sections -Question Mark(Problem Child) Low share of a rapidly growing market, has potential but the future is uncertain -Stars High share of a rapidly growing market, position of leadership in a high growth market -Cash cows High share of a slowly growing market, little potential for growth -Dogs(Means unattractive) Low share of a slowly growing market, not going anywhere

  6. Examples -Question mark(problem child) HMV-Sells CDs(CDs sales are falling), music industry growing, trying to sell games and things online to stay in the game -Stars Apple iPod- sells iPods which has almost all of the portable music devices -Cash Cows Kellogg's Corn Flakes- very popular cereal -Dogs Microsoft Bing- Can’t compete with Google

  7. Advantages/Disadvantages Question Mark(Problem Child) Advantage: Has potential to become a Star Disadvantage: Has potential to become a Dog Stars Advantage: Product/Business is strong Disadvantage: High spending on marketing a product Cash Cows Advantage: Large positive cash inflow Disadvantage: Little potential for growth Dogs Advantage: Low spending Disadvantage: Failed product not going anywhere

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