boston matrix

• boston matrix

  *tool for portfolio analysis

  *assesses how products are performing in relation to market share and market growth

  
• question mark (problem children)


  *little market share, high market growth

  *all new products

  *not profitable yet

  *require heavy marketing to promote

  *heavy investment into promotion & marketing and r&d

  *brand building to increase brand awareness

  *want to become a star

  *introduction stage PLC

  *likely to have negative cash flow
• stars


  *high market share, high market growth

  *marketing to maintain position - competitors may take advantage of growing market

  *hope to move to cash cow

  *in profitable growth phase

  *growth stage PLC

  *likely to be cash neutral
• cash cows


  *high market share, low market growth

  *bring in lots of money - costs are low as its already been promoted and are produced in high volumes

  *use extension strategies to maintain high levels of sales

  *maturity stage PLC

  *positive cash
• dogs


  *low market share, low market growth

  *try to save product by harvesting profit (likely to only be short term)

  *may require divestment if cannot be saved (selling off)

  *hope to extend life

  *decline stage PLC
• ultimate goal of boston matrix

  to get product to cash cow position
• in long-term, profits made from ... should be invested into ...


  cash cows ... question marks, so they become stars