PowerPoint Presentation

Boston MatrixAKA BCG MatrixBy Sean

What Is It? 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.How Does It Work?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 MarksStarsCash CowsDogs

Ideally, a portfolio should have products in all of these categoriesQuestion MarksAKA problem child'sMinimal to low cash flowUncertain potentialCould either be turned into a star or a dog

Fixes:

You can invest in it to increase market shareUpdate promotions and marketing strategiesStarsHigh market shareUsually the market is rapidly growingThe product/business is fairly strongLots of marketing on the productCash flow is decent

Fixes:

Work at keeping competitors at bayInvestmentMaintain or increase leadership

Cash CowsA business that is not growing but still makes moneyHas been around for a long timeSuccessful productLittle room for growthGreat cash flow

Fixes:

Defend their dominanceMaximize cash flow by reducing investmentUse cash for other productsDogsLow market growth rateSmall market sharePotential is very minimalEither failed product or declining in the life cycle

Strategy:

Sell out or start to decreaseDo not investAny profit made should be re-invested in other products to just stay evenQuestion MarkStarCash CowDog

AdvantagesA safe and reliable way to analyze your business portfolioA good way to help plan for the futureWill help you improve you products

DisadvantagesDoes not include the economy and its factorsThe matrix is based on some assumptions which could result in wrong dataFocuses only on specific parts of a functioning business

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