The Boston Matrix is a tool for portfolio analysis

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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

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