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

2. 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

3. Boston Matrix

4. 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)

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

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

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

9. 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)

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