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The
Boston Consulting Group's Product Portfolio Matrix The
Boston Matrix was developed by the Boston Consulting Group and is an approach to
product portfolio planning. It has two controlling aspect namely relative market
share (meaning relative to the competition) and market growth. One
would look at each individual product in a range (or portfolio) and place it
onto the matrix, for every product in the range, and then plot the products of
the competition to get a relative market share.
Dogs These are products with a low share of a low growth market. Cash
Cows These are products with a high share of a slow growth market. Cash Cows generate more than is invested in them. Problem
Children These
are products with a low share of a high growth market. They consume resources
and generate little in return. They absorb most money as you attempt to increase
market share. Stars These
are products that are in high growth markets with a relatively high share of
that market. Stars tend to generate high amounts of income. Keep and build your
stars. One look s for some kind of balance within the range, trying not to have any Dogs. Cash Cows, Problem Children and Stars need to be kept in some sort of balance.
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