Boston Matrix

• Boston Matrix

  A conceptual model that is useful for business strategy, both a tool and a model
• Boston Matrix

  • Categorizes products/brands into 4 categories: stars, question marks, cash cows, dogs
  • Based on 2 dimensions: market growth rate, relative market share
• Stars


  Products/brands with high relative market share in high growth markets
• Question Marks


  Products/brands in high growth markets but with low relative market share
• Cash Cows


  Products/brands with high market share in low growth/mature markets
• Dogs


  Products/brands with low relative market share in low growth markets
• Stars


  Require investment to defend market position
• Question Marks


  Require selective investment to turn into Stars
• Cash Cows


  Generate cash that can be invested in Stars and Question Marks
• Dogs


  Should be phased out or sold
• Apple products

  • iPhones - Stars
  • App Store/iTunes - Cash Cows
  • Apple Watch - Question Marks
  • iPods - Dogs
• The Boston Matrix is a framework for management to assess the balance of their product/brand portfolio
• The Boston Matrix is not a scientific tool, it has limitations and other factors should be considered beyond just market growth and relative market share
• Boston Matrix

  Linked to Product Life Cycle but focused on portfolio management rather than individual product sales