1 / 11

Boston Matrix

Boston Matrix. Sharon Wu . What is Boston Matrix. It is a portfolio planning model developed by Bruce H enderson of the Boston Consulting Group in the early 1970’s. The collection of businesses or products that make up a business. Function.

kimberly
Télécharger la présentation

Boston Matrix

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Boston Matrix Sharon Wu

  2. What is Boston Matrix • It is a portfolio planning model developed • by Bruce Henderson of the Boston Consulting • Group in the early 1970’s. • The collection of businesses or products • that make up a business

  3. Function • Balance portfolio with some products in each • category • It is used in market to classify the types of • products present in any company according to • market share and market growth.

  4. General summary 1. Star 2. Problem child • High market growth • Low market share • Cash absorbing • Build • High market growth • High market share • Cash neutral • Hold

  5. 3. Cash cow 4. dog • Low market growth • High market share • Cash generating • Harvest or milk • Low market growth • Low market share • Cash neutral • divest

  6. Chart

  7. Details: star • High share of a rapidly growing market • Position of leadership in a high growth market • Net cash inflow is neutral or at best modest • The business is relatively strong and the market is growing Examples: Estee Lauder ( advanced night repair ) ; some alcoholic drink

  8. 2. Cash Cow • High share of a slowly growing market • Mature stage in the product life cycle • Mature, success product • Dominant share • Little potential for growth Examples: tube material PA14D polypropylene; iphone

  9. 3. dogs • Unattractive • Low share of a slowly growth market • Not going anywhere • Not real potential • Products are in the decline phase of their life cycle Examples: V998; Nokia

  10. 4. Problem child products • Low share of a rapidly growing market • Cash flow is negative • Has potential but the future is uncertain • Could become either a star or a dog Examples: diamond

  11. Advantages & disadvantages • It is only a snapshot of the current position • Does not take account of environmental factors • Good for analysing product portfolio decisions

More Related