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Boston Matrix

Boston Matrix. AKA BCG Matrix. By Sean. In the most simple terms possible, the Boston Matrix is a visual tool used to help you maximize your profit in the future by locating your possible opportunities and helping you budget your resources accordingly. What Is It?.

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Boston Matrix

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  1. Boston Matrix AKA BCG Matrix By Sean

  2. In the most simple terms possible, the Boston Matrix is a visual tool used to help you maximize your profit in the future by locating your possible opportunities and helping you budget your resources accordingly. What Is It?

  3. More specifically, the matrix targets the portfolio of a corporation (products that make up a business), and categorizes them into a balanced collection • The four categories are: • Question Marks • Stars • Cash Cows • Dogs • Ideally, a portfolio should have products in all of these categories How Does It Work?

  4. AKA problem child's • Minimal to low cash flow • Uncertain potential • Could either be turned into a star or a dog • Fixes: • You can invest in it to increase market share • Update promotions and marketing strategies Question Marks

  5. High market share • Usually the market is rapidly growing • The product/business is fairly strong • Lots of marketing on the product • Cash flow is decent • Fixes: • Work at keeping competitors at bay • Investment • Maintain or increase leadership Stars

  6. A business that is not growing but still makes money • Has been around for a long time • Successful product • Little room for growth • Great cash flow • Fixes: • Defend their dominance • Maximize cash flow by reducing investment • Use cash for other products Cash Cows

  7. Low market growth rate • Small market share • Potential is very minimal • Either failed product or declining in the life cycle • Strategy: • Sell out or start to decrease • Do not invest • Any profit made should be re-invested in other products to just stay • even Dogs

  8. Star Question Mark Cash Cow Dog

  9. A safe and reliable way to analyze your business portfolio • A good way to help plan for the future • Will help you improve you products Advantages

  10. Does not include the economy and it’s factors • The matrix is based on some assumptions which could result in wrong data • Focuses only on specific parts of a functioning business Disadvantages

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