The Boston Matrix

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The Boston matrix
A tool that can compare the product of the business and work out which ones
have the best prospects for the future.
The boston matrix :
Problem child:
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.
Look for some kind of balance within your portfolio. Try not to have any Dogs. Cash Cows,
Problem Children and Stars need to be kept in a kind of equilibrium. The funds generated by
your Cash Cows is used to turn problem children into Stars, which may eventually become
Cash Cows. Some of the Problem Children will become Dogs, and this means that you will
need a larger contribution from the successful products to compensate for the failures.
Dogs:
These are products with a low share of a low growth market. These are the canine version of
'real turkeys!'. They do not generate cash for the company, they tend to absorb it. Get rid of
these products.
Cash Cows:
These are products with a high share of a slow growth market. Cash Cows generate more
than is invested in them. So keep them in your portfolio of products for the time being.

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