Boston matrix case study. Boston Matrix (Product Portfolio Model) 2022-10-11

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The Boston Matrix, also known as the Boston Consulting Group (BCG) Matrix, is a tool used in strategic management to evaluate the relative market share and growth potential of a company's product lines or business units. It is a graphical representation of a company's portfolio of products or businesses, with the purpose of helping the company allocate resources and prioritize its efforts.

The matrix is divided into four quadrants, based on the combination of market growth rate and market share. The quadrants are labeled as follows:

  1. Stars: These are products or business units that have a high market share in a rapidly growing market. They require significant resources to maintain their position, but have the potential for high profitability.

  2. Cash cows: These are products or business units with a high market share in a mature or slow-growing market. They generate a steady stream of cash flow, but have limited potential for growth.

  3. Dogs: These are products or business units with a low market share in a mature or slow-growing market. They consume resources without generating significant revenue or growth.

  4. Question marks: These are products or business units with a low market share in a rapidly growing market. They have the potential to become stars, but also have a high risk of failure.

A company's portfolio of products or business units should ideally include a mix of stars, cash cows, and question marks, with minimal investment in dogs. The goal is to convert question marks into stars, while maintaining and maximizing the cash flow from cash cows.

One example of a company using the Boston Matrix is Procter & Gamble (P&G), a consumer goods manufacturer. P&G has a diverse portfolio of products, including well-known brands such as Crest toothpaste, Tide laundry detergent, and Pampers diapers. Using the Boston Matrix, P&G can evaluate the relative performance of each of these product lines and allocate resources accordingly.

For example, Crest toothpaste may be classified as a cash cow, with a high market share in a mature market. P&G may therefore focus on maintaining Crest's market share and maximizing its profitability, rather than investing heavily in marketing and new product development. On the other hand, P&G may classify a new product, such as a plant-based cleaning solution, as a question mark, with low market share in a rapidly growing market. P&G may then invest more resources in marketing and product development for this product, with the hope of turning it into a star.

While the Boston Matrix is a useful tool for strategic management, it has its limitations. It is based on assumptions about market growth and market share, which may not always be accurate. It also does not take into account other factors that may influence a product's success, such as competition, changing consumer preferences, and technological advances. Additionally, the matrix does not provide a clear plan for how to move products from one quadrant to another.

Overall, the Boston Matrix is a valuable tool for evaluating the relative performance and potential of a company's product lines or business units. By considering market growth and market share, companies can prioritize their efforts and allocate resources effectively, with the aim of maximizing profitability and long-term success.

[PDF] Application of Boston matrix combined with SWOT analysis on operational development and evaluations of hospital development.

boston matrix case study

This will help it in earning more profits as this Strategic business unit has potential. STEP 9: Selection Of Alternatives For Nike Bcg Matrix Case Solution: It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Draw the Circles on a Matrix Free Download 2. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Research note and communication. Then, a very careful reading should be done at second time reading of the case. Clear yourself first that on what basis you have to apply SWOT matrix.

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Boston matrix case study

boston matrix case study

STEP 4: SWOT Analysis of the boston Consulting Group Boston Matrix HBR Case Solution: SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. The gamut of products that Microsoft offers is integrative right from the Windows operating systems that it provides to the software that runs on top of it. And the buyer power is low if there are lesser options of alternatives and switching. They do everything to make this promise come true. Based on the analysis, each resource can either provide a sustained competitive advantage, has a good competitive advantage, temporary competitive advantage, competitive parity or competitive disadvantage. Think fast and tell me what all Nestlé products you love! Or push it to become cash cow or star later? Prentice Hall, Upper Saddle River, NJ.

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The Boston Consulting Group (Bcg) Matrix

boston matrix case study

The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. Considering what security measures you or the computer owner have undertaken for your computer, does the assessment surprise you?. However, introduction should not be longer than 6-7 lines in a paragraph. Summary This paper builds on the assignment done for the first part about knowledge of companies and builds a marketing report for the chosen company, Microsoft.

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boston Consulting Group Boston Matrix Case Study Solution and Analysis of Harvard Case Studies

boston matrix case study

And its ratio with corruption and organized crimes. Accounting education, 11 4 , 365-375. The recommended strategy for Airbnb is to stop further investment in this business and keep operating this strategic business unit as long as its profitable. If the company holds some value then answer is yes. Management Decision, 53 8 , 1806-1822. Think how many market-segments and strategies it would be catering to! Ideally a business would prefer products in all categories apart from Dogs! However, with increasing health consciousness, people are now refraining from consumption of artificial flavours.


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Bcg Matrix Case Study of Nestle

boston matrix case study

There may be multiple problems that can be faced by any organization. . The decision of the group impacts the entire investigation. . Since the development rate is high here, with the correct systems and ventures, they can become Cash cows and, at last, Stars if they have a flat piece of the overall industry so that off-base ventures can downsize them to Dogs significantly after loads of speculation. After finding a way to use fresh milk for his candy, Hershey expanded his company and still met the high demands of the American public.

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BCG Matrix and VRIO Framework for Airbnb

boston matrix case study

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The Core Competency Framework will help us find out. High or low growth rates can vary from industry to industry, but the cut-off point in general is usually chosen around 10 percent per annum. . BCG Matrix of Nestle 7. RARE: the resources of the boston Consulting Group Boston Matrix company that are not used by any other company are known as rare. Clear yourself first that on what basis you have to apply SWOT matrix.

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Nike Bcg Matrix Case Study Solution and Analysis of Harvard Case Studies

boston matrix case study

This paper aims at discussing the strategic effects of the Boston matrix model for the Abuja Energy Surveillance AES and how it can impact its 10-year strategic market share plan for the system. Walmaart Balance Score Card Case Study 1539 Words 7 Pages WalMart was used in this paper to illustrate the importance and effectiveness of establishing a BSC. · the ceo of a climbing- gym chain whose uk locations are faltering must decide whether to press on or pull back from his international growth plans. It helps identify which one of its internal strengths and resources can be a source of sustained competitive advantage. Airbnb is also the market leader in this category.

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BCG Matrix EXPLAINED with EXAMPLES

boston matrix case study

The BCG matrix for Airbnb will help decide on the strategies that can be implemented for its strategic business units. Businesses should invest in their stars and can implement vertical integration, market penetration, product development, market development, and horizontal integration strategies. Is your problem solved? Starting from resource allocation to utilization of marketing channels or platforms. Thus stands in relation to investments, because they are the ones that stimulate further growth. However, the problem should be concisely define in no more than a paragraph.

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