Boston consulting group's portfolio matrix model Boston matrix-portfolio decision model Boston matrix and Ansoff matrix are both good tools for marketing managers. Proposed by a large consulting company in the United States, this model is mainly used to assist enterprises in business portfolio or investment portfolio. Boston Matrix has two controlling factors, one is relative market share (relative to your competitors), and the other is market growth rate. If you are a famous manager, you should pay attention to every product in your portfolio and put them into the matrix for analysis one by one. At the same time, you can analyze competitors' products and market share and compare them with yours.

Boston Matrix This is a simplified graph in many ways. Of course, it has certain limitations, which we will discuss later. Products in each quadrant have different meanings: thin dog products refer to products with low market share and low market growth rate. They are "useless things" like canine teeth. They can't create any benefits for the company, they can only make the company spend money. This product should be discarded immediately. Cash cow products refer to products with high market share and low market growth rate. Cash cow products have generated huge profits far exceeding the investment amount. Therefore, such products should be placed at the beginning of the product portfolio. Problem children products refer to products with low market share and high market growth rate. They consume a lot of resources, but they get nothing in return. It takes a lot of money to expand market share. Star products refer to products with high market growth rate and high market share. Star products will bring high returns, keep and expand your star products. Find a little balance in your product portfolio. Try to avoid thin dog products and find a balance between cash cows, problem children and star products. The money generated by cash cow products should be used to turn problem children's products into star products, and of course it is possible to eventually become cash cow products. Sometimes this transformation may turn a problem sub-product into a thin dog product. At this time, we need to get more benefits from some successful products to make up for this failed transformation. Boston matrix will produce the problem of 1. Boston matrix will form an assumption that high market share can bring high profit rate, but sometimes this is not the case. For example, when Boeing introduces a new model, it may soon gain a high market share, but the cost of developing this new model is very expensive, so the company does not have high profits. 2. It usually applies to strategic business organizations. These are some business areas, not just products. For example, Ford has a multi-purpose off-road vehicle in Britain. This is a strategic business organization, not a product. 3. This matrix will assume that strategic business organizations will cooperate. This is not always the case. 4. The main problem of Boston Matrix is that it oversimplifies a series of complicated decisions. Everyone should attach great importance to this and carefully use this matrix as a planning tool.