-The Boston consulting group developed this as a tool for portfolio analysis. -Collection of businesses or products that make up a business. -applies.

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Presentation transcript:

-The Boston consulting group developed this as a tool for portfolio analysis. -Collection of businesses or products that make up a business. -applies to the marketing firm. -Firms should analyze the products by four categories Question marks, stars, cash cows, dogs. The ideal is balanced portfolio with some products in each category.

Examples of these categories: Problem Child- low share of rapidly growing market, cash flow is negative. Has potential, but the future is uncertain. Stars- High share of rapidly growing market, The product/corporation is growing, net cash income is neutral at the best. Cash cow – high share of a rapidly of a slowly growing market, mature successful product, high cash flow. Dog- not going anywhere, your best to scatter from this money pit, product failed.

A great example of problem child marketing would be a retail business, clothing and other high market companies that sell common and not in demand items.

An example of stars would be Wal-Mart because it has a very high market share and everyone wants products for cheap, But there is notorious competition between prices and rates of purchase.

Examples of a cash cow perspective would be companies such as Pepsi because they have a high market share in a slow growing market, they also have a very successful and mature product that people really like.

A business with small market growth and small market share. A good example would be a small time movie theater or a grocery store that is in a small town with low market share and low money making.

The Advantages of this is a safe and reliable way to analyze your business portfolio. Great way to help plan your future Will help you improve products. Disadvantages Does not include the economy factors The matrix is based on some assumptions, could result in false data Focuses only on specific parts of a business