This is an technique to analyse an organisation’s business or product portfolio.
Developed by the Boston Consulting Group, the matrix is used to plot the market share and growth rates of either the organisation’s products or, for larger corporations, its businesses; as a scatter graph. Items are then classified in one of four ways: cash cows, dogs, problem children and stars. Typical organisations look for a balance of cash cows (bringing in strong but steady revenues) and stars (offering strong future potential revenues).
Boston Matrix is a term normally found in strategic management and performance management.
Explore our learning zone to discover more