The business world is constantly evolving, and companies are constantly faced with unique challenges and opportunities. To address these dynamics, it is essential for companies to adopt strategic marketing tools that can guide them in understanding their market positioning and in defining a winning strategy. In this context, the Boston Matrix emerges as a crucial tool in the field of marketing.
What is the Boston Matrix?
The Boston Matrix, also known as sweden phone number list the A Strategic Guide BCG Matrix (after the consulting firm that developed it, the Boston Consulting Group ), is an analytical tool designed to help companies evaluate and manage their product or service portfolio.
This matrix divides the portfolio into four categories based on two key dimensions: market share and market growth rate .
The four categories of the Boston Matrix:
The Boston Matrix is a graphical model that involves placing companies, their products or services within a Cartesian plane based on their relative market share and growth rate.
Assuming that we want to evaluate a company as a whole, we can proceed by inserting the size of the companies in relation to the reference market on the x -axis ; on the left we will have the companies that occupy small ghazal tracey hub market spaces (for example close to 0%) and on the right those that occupy increasingly larger spaces.
On the ordinate axis we will indicate the growth rate of the companies, therefore we will have at the bottom the companies that are growing less in percentage
By placing companies within our reference system we will be able to have a more immediate vision of the activities that the company must undertake.
Boston Matrix Areas
The Boston Matrix as well as the SWOT canvas organizes the elements within it into 4 large spaces.
1. Stars:
Stars represent companies whose burkina faso leads products or services occupy a high market share and have a high market growth rate. They are very persistent companies that require significant investments to maintain and increase their leadership position.
2. Cash Cows:
Cash cows are companies whose products or services have a high market share but a low growth rate. They generate stable cash flows and require minimal investment , being in a mature stage of their life cycle.
3. Questions (Question Marks):
The questions represent companies A Strategic Guide with a low market share but a high market growth rate. These businesses are in a growth phase and require considerable investment to increase their market share and become stars.
