Transcript The Boston Matrix is a tool for portfolio analysis

Boston Matrix
By Robert Vadas
-The Boston Consulting group developed this as a tool of
portfolio analysis
-Portfolio is the collection of businesses or products that make up
a business
-Can be applied to portfolio of products
Chart
-Question Mark(Problem Child)
Low share of a rapidly growing market, has potential but the future is
uncertain
-Stars
High share of a rapidly growing market, position of leadership in a high
growth market
-Cash cows
High share of a slowly growing market, little potential for growth
-Dogs(Means unattractive)
Low share of a slowly growing market, not going anywhere
Advantages/Disadvantages
Question Mark(Problem Child)
Advantage: Has potential to become a Star
Disadvantage: Has potential to become a Dog
Stars
Advantage: Product/Business is strong
Disadvantage: High spending on marketing a product
Cash Cows
Advantage: Large positive cash inflow
Disadvantage: Little potential for growth
Dogs
Advantage: Low spending
Disadvantage: Failed product not going anywhere