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Learn how to utilize the Boston Matrix to analyze products based on market share and growth rate, and make strategic decisions to promote, maintain, or phase out products accordingly.
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Product Portfolio Analysis (The Boston Matrix) MOOO!
The Matrix High Market share low Low Rate of growth for the whole market High
Problem Children High Market share low Low Rate of growth for the whole market High
Problem children • Implications: • What are the chances of these products securing a hold in the market? • How much will it cost to promote them to a stronger position? • Is it worth it?
Stars High Market share low Low Rate of growth for the whole market High
Stars • Huge potential • May have been expensive to develop • Worth spending money to promote • Consider the extent of their product life cycle in decision making
Cash Cows High Market share low Low Rate of growth for the whole market High
Cash Cows: • Cheap to promote • Generate large amounts of cash – use for further R&D? • Costs of developing and promoting have largely gone • Need to monitor their performance – the long term? • At the maturity stage of the PLC?
Dogs High Market share low Low Rate of growth for the whole market High
Dogs • Are they worth persevering with? • How much are they costing? • Could they be revived in some way? • How much would it cost to continue to support such products? • How much would it cost to remove from the market?
What to do with ‘Dogs’ WOOF!
Balance Do we want a field of cows? MOOO!
Balance and the PLC Sales (2) (3) (1) D B C A Time