Boston Matrix Joe Chou
What is Boston Matrix
Function Balance portfolio with some products in each Category. It is to classify the product into four type of products. Product are categorized as: Question marks Stars Cash cows Dogs
General summary Star Problem child High market growth High market share Cash neutral Problem child High market growth Low market share Cash absorbing Build
3. Cash cow 4. dog Harvest or milk Low market growth High market share Cash generating Divest Low market growth Low market share Cash neutral
Chart
Details: 1.star High share and rapidly growing marketing. Position is in the leadership in a high growth market. High spending on marketing the product. Net cash inflow is neutral or at best modest. The product/ business is relatively strong and the market is growing.
2. Cash Cow
3. dogs Unattractive Low share and slowly growth market. Product that had failed. Not potential. Not moving market. Product that are in the decline phase of their life cycle. Need to be phase out or sell off.
4. Problem child products
Advantages & disadvantages