These products have a low share of a low-growth market. However, a market that is not growing may easily be declining, and these products may not continue to generate profits for ever. In many cases, they are a good source of the resources to try to convert problem children into stars. These products need very little attention, and simply generate profits.

They can, however, fall into the ‘dogs’ category if the market growth slows before the necessary market share has been achieved, and therefore do need careful watching.

They therefore tend to absorb a lot of attention and money as the business attempts to convert them into stars by increasing market share. These products have a relatively low share of a high growth market. These products may require investment to sustain their market-leading position. They may eventually become cash cows, when the market stops growing. These are the best products: they have a high market share of a growing market, so will hopefully continue to generate cash and profits for a long time.

You can work out each one exactly, or you can just opt for a low–high distinction.Įach product is plotted on a simple four-by-four grid with relative market share and market growth as the axes (see diagram below), giving four possible product categories. Market growth: how much the market itself is growing, which gives a measure of cash usage.The product’s market share compared to its competitor products, which gives a measure of cash generation and The Boston Matrix assesses each product on two measures: While both these tools are relatively old, they still have their uses in strategic decision-making. It focuses on the possible strategies for growth, and the risks associated with each one. The Ansoff Matrix, also known as the Product/Market Expansion Grid, was developed by Igor Ansoff and first published in the 1950s. It is designed to help companies work out which of their products are worth attention, which should be stopped, and what strategies to use to improve sales. The Boston Matrix was developed by consultants at the Boston Consulting Group in the 1970s, and is also known as the Product Portfolio Matrix. The Boston Matrix and the Ansoff Matrix are both marketing tools designed to help companies explore their product portfolios and strategies, and make decisions about where to focus attention.

Bcg matrix