1. Boston Matrix
Joe Chou

2. What is Boston Matrix

3. Function Balance portfolio with some products in each Category.
It is to classify the product into four type of products.
Product are categorized as:
Question marks
Stars
Cash cows
Dogs

4. General summary Star Problem child High market growth
High market share
Cash neutral
Problem child
High market growth
Low market share
Cash absorbing
Build

5. 3. Cash cow 4. dog Harvest or milk Low market growth High market share
Cash generating
Divest
Low market growth
Low market share
Cash neutral

6. Chart

7. Details: 1.star High share and rapidly growing marketing.
Position is in the leadership in a high growth market.
High spending on marketing the product.
Net cash inflow is neutral or at best modest.
The product/ business is relatively strong and the market is growing.

8. 2. Cash Cow

9. 3. dogs Unattractive Low share and slowly growth market.
Product that had failed.
Not potential.
Not moving market.
Product that are in the decline phase of their life cycle.
Need to be phase out or sell off.

10. 4. Problem child products

11. Advantages & disadvantages