- Quick introduction and company example -

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- Quick introduction and company example - Boston Matrix - Quick introduction and company example -

Boston Matrix developed in early 1970s by Boston Consulting Group Tool for decision making process in which product/business to invest Key factors are: MARKET SHARE MARKET GROWTH Shows where to apply other resources, people, time and equipment

Boston Matrix

Boston Matrix DOGS: market share low & market growth low smaller TV manufacturer CASH COWS: market share high & market growth low Samsung TVs QUESTION MARKS: („problem child“): market share low & market growth high Nokia / Alcatel new market entry next year STARS: market share high & market growth high Samsung (Smartphone)

Boston Matrix Possible development: Question marks > Stars > Cash cows -> high potential to make money

Boston Matrix Example Apple: Step 1 (plot opportunities): Ipod Iphone Ipad Iwatch

Boston Matrix Step 2 (classify into the four categories): Ipod (1st generation): Dog Iphone: Stars Ipad: Cash cows Iwatch: Question marks

Boston Matrix Step 3 (what to do with each product?) Ipod (dog): Strategy „DIVEST“ (get rid of it) Iphone (stars): Strategy „HOLD“ (maintain) Ipad (cash cows): Strategy „HARVEST“ (reduce investment) Iwatch (?): Strategy „Built market share“ (further investments i.e. advertisement)

Boston Matrix PROS: Easy to apply Easy to understand CONS: Flat analysis List all products

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