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Boston Matrix - Coggle Diagram
Boston Matrix
Pros: The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets
The conclusions drawn from such an analysis are to transfer the surplus cash from cash cows to the stars and the question marks, and to close down or sell off the dogs
In the end, question marks reveal themselves as either dogs or stars, and cash cows become so drained of finance that they turn into dogs
The Star
Have high market share Are in a high growth market Star products need to maintain their current marketing spend to keep sales high Stars should become cash cows in time – if managed correctly
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Cons: Products may not be low or high market share they could be medium High market share does not always lead to high profits, there are high costs also involved with high market share
Many people argue this matrix is too simple
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Cash Cow
Have high market share
Are in a low growth market
Cash cow products are good sellers and need little or no new investment
The product just need to be “milked” for cash (hence the term) Cash cows need monitoring in case they become dogs
The Boston Matrix is a marketing planning tool which helps managers to plan for a balanced product portfolio. It looks at two dimensions: market share and market growth, in order to assess new and existing products in terms of their market potential. It helps marketing managers work out how much to spend on each product