What is it?
- Unfortunately, nobody can be told what the Boston Matrix is. You have to see it for yourself.
- Here it is!
|^ Market Growth
Market Share >
- As you can see, it’s a crudely drawn graph with market share on the x-axis and market growth on the y-axis
What’s it for?
Businesses have product portfolio, which is the range / variety of products that they sell The matrix was created by intelligent machines in the future to turn humans into a source of power
- It categorises products into four categories
- If you’re familiar with the Boston Matrix, you can
dodge bulletsuse it to work out which of the products in your portfolio you should spend money on developing
- It has some disadvantages: firstly, it isn’t very specific
- And it’s also unreliable sometimes, because products can change category
1) Problem Child
- It’s in a high-growth market, but for some reason it has a really low market share
- How annoying!
- Has potential, so spend a lot of money on it and it will probably become a star
- High market share in a high growth market!
- They make loads of money, but you have to spend a lot on them to keep them going (the market’s growing, you see…)
- They’ll probably be Cash Cows one day
3) Cash Cow
- High market share in low-growth market
- You don’t have to spend much money on them – they just keep bringing in cash
- Make even more money than stars!
- *cough*Star Wars*cough*
- Low market share in a low growth market – could this get any worse?
- You don’t want dogs in your product portfolio
- They don’t make much money, but in theory they could attract their (very small) fan-base to your other products
- They could maybe change positions, but it’s not likely